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.
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.
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