Facebook to utilise this money to pursue acquisitions
Goldman Sachs and Digital Sky Technologies, a Russian investment firm, have invested $500m in social networking site Facebook, in a deal that values the company at $50bn.
As per the deal, Goldman has invested $450m, and Russian investment firm that has already invested about $500m into Facebook, invested $50m, reported New York Times.
According to the report, Goldman has the right to sell part of its stake, up to $75m, to Digital Sky Technologies.
New York Times also reported that Goldman is planning to create a ‘special purpose vehicle’ to allow its clients to invest in Facebook.
The new money is expected to be utilised by Facebook to develop new products and possibly pursue acquisitions.
The new investment comes as the Securities and Exchange Commission has begun an inquiry into the increasingly hot private market for shares in Internet companies, including Facebook, Twitter, the gaming site Zynga and LinkedIn, an online professional networking site.