Goldman Sachs Says YES to Facebook
One of the savviest and well-respected of investment firms, Goldman Sachs, has decided to invest in the popular social networking internet presence, Facebook, to the tune of $500 million. Goldman Sachs, together with a Russian investor, values the company at a cool $50 billion, according to people involved with the deal, making Facebook worth more than powerhouse firms such as eBay, Yahoo, and Time Warner.
The Goldman Sachs investment is a signal that Facebook’s strength is on the rise, beginning to compete with such internet monster companies such as Google, according to Wall Street analysts. The injection of money into Facebook’s operation will allow Facebook to steal highly valued employees, develop new, innovative products, and even look into acquisitions. All this is being accomplished while Facebook remains a non-publicly traded company. This new deal might also allow older shareholders, especially Facebook employees, to cash-in on at least some of their investments in the company.