Goldman Sachs Invests 450 Million In Facebook

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Goldman Sachs Invests $450 Million In Facebook

By: Jen Williams
2011-01-21

The perceived value of a company is often evident in the monetary attention that investors place within the organization. If the company shows...

... a promising future, the investment will often match the enthusiasm. If things look bleak, so will too the amount of the check. Given that theory, if half a billion dollars is any indication of enthusiasm for a companys future outlook, then Facebook is going to have a great time.

The investment community was quite surprised this week to learn that two Facebook investors, Goldman Sachs ($450 million) and Digital Sky Technologies ($50 million), both wrote rather large checks to the social networking industry dominant leader. But, as for the reason why, no one quite knows. Over the course of 2010, the social network giants overall value increased steadily with numbers at $33 billion in September 2010 and $41 billion in November 2010. Now, at the beginning of 2011 with this combined investment of $500 million between the two investors, the total value of the company is now placed well over a staggering $50 billion.

There is a lot of web speculation about what Facebook intends to do with this influx of cash at their disposal. Some stories circulating ponder if they will spread the wealth within their human resources pool by seeking and hiring top-notch computer web developers and programmers in the industry to help make the social site even stronger. Others speculate that they will sink the entire purse into company growth and pursue tough acquisitions that before the large investment, would not have been possible.

Whatever decision is made will likely become evident soon. Because of this large investment, Facebook now has even more attention from shareholders, other investors and the public in general. Many hopes are hinged on the idea of Facebook becoming a publicly traded company with an IPO in its future. Only time will tell.

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About the Author:
Jen Williams is a guest author for Pronet Advertising.


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