Facebook has raised US$1.5 billion at a valuation of approximately US$50 billion, on a two parts transaction. Today, Goldman Sachs completed an oversubscribed offering to its non-U.S. clients in a fund that invested US$1 billion in Facebook Class A common stock. Back in December 2010, 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."
DST and Goldman Sachs approached Facebook to express their interest in making an investment, and Facebook decided it was an attractive opportunity to bolster its cash reserves and increase its financial flexibility with limited dilution to existing shareholders.
Under the transaction's terms, Facebook had the option to accept between US$375 million and US$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 US$1 billion.
The company says there are no immediate plans for these funds. Facebook will continue investing to build and expand its operations.
Facebook expects to pass 500 shareholders at some point in 2011, and therefore expects to start filing public financial reports no later than 30 April 2012.