Today Facebook.com said in a press release, that they completed raising $1.5 Billion Dollars which makes the companies valuation $50 Billion.
Here is some information from the press release:
“The transaction consisted of two parts.”
“Today, Goldman Sachs completed an oversubscribed offering to its non-U.S. clients in a fund that invested $1 billion in Facebook Class A common stock.”
“In December, Digital Sky Technologies (DST), The Goldman Sachs Group, Inc., and funds managed by Goldman Sachs invested $500 million in Facebook Class A common stock at the same valuation.”
“Our business continues to perform well, and we are pleased to be able to bolster our cash position with this new financing,” said David Ebersman, Facebook’s chief financial officer. “With this investment completed, we now have greater financial flexibility to explore whatever opportunities lie ahead.”
“Under the transaction’s terms, Facebook had the option to accept between $375 million and $1.5 billion from the Goldman Sachs overseas offering, at the discretion of Facebook.”
“While the offering was oversubscribed, Facebook made a business decision to limit the offering to $1 billion.”
“Even before the investment from Goldman Sachs, Facebook had expected to pass 500 shareholders at some point in 2011, and therefore expects to start filing public financial reports no later than April 30, 2012.”
So the takeaways from this announcement is that Goldman was willing to invest another $500 Million but Facebook turned it down.
Facebook will probably go public by the end of April 2012 when it has to start releasing finanical data as it will be over the 500 shareholder limit