AfterDawn: Tech news

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
Previous Next  

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.


Comments have been disabled for this article.

Latest user comments

News archive