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New deal values Facebook at $70 billion

Written by James Delahunty (Google+) @ 27 Jun 2011 22:51 User comments (1)

New deal values Facebook at $70 billion GSV Capital Corp adds Facebook shares to its portfolio.
GSV announced on Monday that it had bought 225,000 shares of Facebook, the world's largest social networking website, at a cost of $29.28 per share. Facebook, which by one estimate hit 750 million global users recently, is threatening the Google / Yahoo / Microsoft establishment online as its worldwide traffic continues to climb.

This year, it will overtake Yahoo Inc. in revenue from online display advertising, with more than $2 billion. The company has roughly 2.4 billion outstanding shares, and executives have admitted that it is inevitable that the company will be taken public.

GSV's $6.6 million investment in Facebook shares represents about 15 percent of the California-based investment firm's portfolio.

A group of Facebook shareholders were reported to be trying to unload $1 billion of stock on the secondary market, in a transaction that would also set a $70 billion value on the company. With that valuation, Facebook would sit just below Amazon Inc., HP or Cisco.

Tags: Facebook
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1 user comment

128.6.2011 10:33

With these kind of numbers I'm beginning to see a 'split' coming up soon. [Like I know that much about stocks and trading all that much...] But if it's going to get this big from a 'money' standpoint, manageability becomes a huge problem. Plus the Twinkle Twins probably saw this coming as well & saw it as another reason for not dropping their little escapade either.

I'm also wondering if there isn't an indicator of a "dot com" detonation about to come about within the social network communities as well. Just something to think about.


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