4 Jan 2011

Investment deal raises Facebook value

8:27 am on 4 January 2011

Facebook has reportedly raised funds from Goldman Sachs and a Russian investor in a deal valuing the social networking site at $50 billion.

The New York Times said that Goldman was investing $US450 million in Facebook, and Digital Sky Technologies another $US50 million.

Citing unnamed sources, the paper said the terms of the deal implied a value for Facebook of just over $US50 billion.

Goldman's involvement could also raise speculation that Facebook might float on the stock market.

Facebook told the BBC that it was not commenting on the New York Times story. Goldman also declined to comment.

If valued at $US50 billion, Facebook is worth more than eBay and Time Warner.

The fresh investment is expected to be used to fund develop of new products and possibly make acquisitions, the New York Times said.

The BBC reports it may also enable Facebook employees and early investors to cash in some of their stakes.