GSV Capital Corp fund values Facebook at $70 billion

Summary:Investment group GSV Capital Corp. has picked up a significant number of shares in Facebook, but its valuation of the social networking site has garnered more buzz.

Investment group GSV Capital Corp. has picked up a significant number of shares in Facebook, but its valuation of the social networking site has garnered more buzz.

GSV Capital acquired 225,000 shares in Facebook at an average price of $29.28 per share. That amount equals nearly $6.6 million, which is approximately 15 percent of GSV's total portfolio. GSV is also working on a number of other private investments that are expected to close within a month.

More notably, GSV is reportedly valuing Facebook at $70 billion, which brings the social network somewhere just south of Amazon and HP.

However, 24/7 Wall St. points out that the GSV/Facebook deal is still up in the air because there is a "30-day Right of First Refusal expiration" clause. Nor has Facebook filed for an IPO yet, making the situation even trickier.

Facebook's CEO Mark Zuckerberg said last month that he isn't planning to take his company public just yet, but many tech followers expect such a move by the end of the year. Given that Facebook could possibly have almost 750 million members worldwide by now, it is probably time for Facebook to finally take the plunge.

Related:

Topics: Social Enterprise

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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