GLOBAL – JANUARY 4, 2010 – Facebook is off to a great start with funding from Goldman Sachs and Russian company Digital Sky Technologies. Goldman Sachs invested $450 million, while Digital Sky invested $50 million, making Facebook $500 million richer in funds. The company was said to have raised $800 million in previous rounds of funding. New York Times’ Dealbook says the deal puts Facebook’s value at $50 billion.
What’s next? Company expansion is a very likely possibility to keep up with its over 500 million users, as the company currently has between 1,500 to 2000 employees. Reliable sources say that Facebook is looking into buying the Sun Microsystem Campus at Menlo Park in California, perhaps to expand office there. Analysts are even pondering if Facebook is preparing itself for its inevitable IPO, and earn even more in the process once the company goes public. For now, Facebook is not a public company and remains on the secondary market. Investors are people looking for a piece of the next big thing – such as Starbucks, or Apple – before the rest of the public does.
But is Facebook really worth $50 billion? Analysts are split on the issue. Time Magazine’s Stephen Gandel remains skeptical about the figure, thinking it as a tactical maneuver for Facebook’s IPO. The overvalued rate is also seen as indicative of a coming technology bubble, so investors, "friend" with caution.
