NEW YORK – Social-networking giant Facebook could flex its growing might after reportedly raising $500 million from Goldman Sachs and a Russian firm in a deal valuing the website at $50 billion.
Goldman has invested $450 million, and Digital Sky Technologies (DST), a Russian investment firm that has already sunk about half a billion dollars into Facebook, invested $50 million, The New York Times, citing sources familiar with the deal. Facebook and Goldman declined to comment on the report.
The investment makes Facebook worth more than fellow internet companies, eBay and Yahoo, as well as media company Time Warner. “The stake by Goldman Sachs, considered one of Wall Street’s savviest investors, signals the increasing might of Facebook, which has already been bearing down on giants like Google,” the daily said.
The new money provides the privately held social-networking giant founded by Mark Zuckerberg more firepower to develop new resources, make acquisitions and lure away top employees as it increasingly competes more directly with Internet search giant Google.
The new investment deal could also double the personal fortune of Zuckerberg, the Times said. According to Forbes, Zuckerberg was worth $6.9 billion when Facebook was valued at $23 billion. Goldman has the right to sell part of its stake, up to $75 million, to the Russian firm.
