Goldman Sachs invests in Facebook: IPO increasingly likely

Goldman Sachs invests in Facebook: IPO increasingly likely

Summary: Facebook has been coy about any initial public offering plans, but a $500 million investment from Goldman Sachs and a Russian investor means the company is likely to become publicly traded in the not-too-distant future.

SHARE:

Facebook has been coy about any initial public offering plans, but a $500 million investment from Goldman Sachs and a Russian investor means the company is likely to become publicly traded in the not-too-distant future.

The New York Times reports that the Goldman Sachs investment puts Facebook at a $50 billion valuation. Facebook is worth more than eBay, Yahoo and Time Warner (not to mention a bunch of other companies). And why not? Facebook has vast reach on the Internet and will be the No. 1 U.S. site at some point.

With the dough, Facebook in theory would never have to go public. It has the funding to hire, build data centers and compete with Google. However, we've seen this movie before. Google followed a similar path and there was so much transparency and scrutiny that the company had to go public. When your privately traded shares are as liquid and popular as publicly traded ones it's about time to launch an IPO.

The other elephant in the room is that the Securities and Exchange Commission is poking around on the private market for Internet shares. That inquiry will likely include Facebook, Twitter and Zynga.

In many respects, Facebook is already public. The company might as well make it official.

Topics: Banking, Legal, Social Enterprise

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

10 comments
Log in or register to join the discussion
  • a new internet buble comming?

    that's no different than AOL in 1990's.
    Linux Geek
    • RE: Goldman Sachs invests in Facebook: IPO increasingly likely

      @Linux Geek I have to say, I wonder the same thing sometimes.
      kehutchinson
  • RE: Goldman Sachs invests in Facebook: IPO increasingly likely

    Someone please explain to me why Facebook is worth $50 BILLION dollars to anyone? Yes it has a tremendous base of users, but I am already turned off by the advertising I see now. Add more advertising and I will leave. I am sure someone else will develop another "social" site that allows me to easily keep in touch with my friends.
    fhirtz
    • RE: Goldman Sachs invests in Facebook: IPO increasingly likely

      @fhirtz@...

      Try using your phone. Makes it much more personal.
      minardi
      • RE: Goldman Sachs invests in Facebook: IPO increasingly likely

        <p>MBT 2011<a href="http://www.chaussures-mbt-fr.com/chaussures-mbt-baridi-126/" title="chaussures MBT Baridi"><em><strong>Chaussures MBT Baridi</strong></em></a> profit make instruction an ideal offer more effective, challenging and gentle for the spine. <a href="http://www.chaussures-mbt-fr.com/chaussures-mbt-boost-135/" title="Chaussures MBT Boost"><em><strong>Chaussures MBT Boost</strong></em></a> for Masai Barefoot Technology. There are an ideal offer more as well as an ideal offer more concerns like back again pain, joint discomfort etc.,<a href="http://www.chaussures-mbt-fr.com/chaussures-mbt-bomoa-136/" title="Chaussures MBT Bomoa"><em><strong>Chaussures MBT Bomoa</strong></em></a>
        </p>
        manufactures have take place out with comfy choice of shoes to relieve the pains<a href="http://www.chaussures-mbt-fr.com" title="mbt chaussures"><em><strong>mbt chaussures</strong></em></a>,<a href="http://www.chaussures-mbt-fr.com" title="mbt france"><em><strong>mbt france</strong></em></a>. even although in the end<a href="http://www.louisvuitton-borse.com/" title="louis vuitton borse"><em><strong>louis vuitton borse</strong></em></a>, a marriage devoid of have confidence in and adore wasn?t very good for anyone<a href="http://www.chaussures-mbt-fr.com/chaussures-mbt-changa-125/" title="Chaussures MBT Changa"><em><strong>Chaussures MBT Changa</strong></em></a>, she said.</p>
        <p>Ideally<a href="http://www.chaussures-mbt-fr.com/chaussures-mbt-fanaka-123/" title="Chaussures MBT Fanaka"><em><strong>Chaussures MBT Fanaka</strong></em></a>, once the legs to withstand stress block<a href="http://www.chaussures-mbt-fr.com" title="chaussures mbt"><em><strong>chaussures mbt</strong></em></a>, the method trunk, legs must acquire perpendicular in the direction of the top<a href="http://www.chaussures-mbt-fr.com/chaussures-mbt-chapa-124/"><em><strong>Chaussures MBT Chapa</strong></em></a>. <a href="http://www.louisvuitton-borse.com/" title=">louis vuitton outlet"><em><strong>louis vuitton outlet</strong></em></a> ex-wife Elin Nordegren mentioned she have been by means of hell offered that her husband?s infidelity surfaced but she certainly not strike him<a href="http://www.mbt-scarpe-it.com/"><strong>Scarpe mbt</strong></a>, based on an job interview released toda<a href="http://www.louisvuitton-borse.com/" title="louis vuitton negozio online"><em><strong>louis vuitton negozio online</strong></em></a>y. MBT 2011 Womens Shoes informed individuals newspaper she and Woods attempted for weeks to reconcile the relationship.<a href="http://www.louisvuitton-borse.com/" title="sito louis vuitton"><em><strong>sito louis vuitton</strong></em></a>,<a href="http://www.mbt-scarpe-it.com/"><strong>mbt outlet,mbt scarpe</strong></a>,<a href="http://www.belstaffoutletit.com/"><strong>belstaff</strong></a>,<a href="http://www.belstaffoutletit.com/"><strong>outlet belstaff</strong></a><strong>,<a href="http://www.belstaffoutletit.com/">belstaff italia</a></strong>,<a href="http://www.belstaffoutletit.com/"><em><strong>belstaff</strong></em></a> <a href="http://www.belstaffoutletit.com/"><strong>sito ufficiale</strong></a><br>
        </p>
        mbtshoes123
    • Network effect

      "I am sure someone else will develop another "social" site that allows me to easily keep in touch with my friends."<br><br>But will your friends be on it.<br><br>I'm happy I predate the Facebook generation. But the network effect in IT is very powerful (see MS and win32).
      Richard Flude
  • RE: Goldman Sachs invests in Facebook: IPO increasingly likely

    Mare spam from Russia coming to us all...
    minardi
  • RE: Goldman Sachs invests in Facebook: IPO increasingly likely

    More sp*m from Russia coming to you. (Why was my previous message reported as spam?)
    minardi
  • GS is slightly exagerating the numbers ...

    Facebook is now at 575 million registrations, not 600 million.

    Don't get me wrong, that's massive and impressive and it will be at 600 million soon.

    They've reached a level of connection domination that's going to make it increasingly harder to be displaced in their established markets.

    http://www.datagenetics.com/blog/december32010/index.html

    Their harderst challenge will be to sustain growth, and to do that they are going to have to partner or buy some of the other large (international) players.
    DataGenetics
  • RE: Goldman Sachs invests in Facebook: IPO increasingly likely

    Well done! Thank you very much for professional templates and community edition
    <a href="http://www.yuregininsesi.com">sesli sohbet</a> <a href="http://www.yuregininsesi.com">sesli chat</a>
    birumut