In September2010, Facebook was worth between $23 billion and $33 billion and in November it was worth $41 billion. The New York Times says that the deal sets the popular social network’s valuation at a whopping $50 billion. Facebook has raised over $800 million over five rounds of funding. With this round, the social network will have raised over $1.3 billion.
The stake by Goldman Sachs, considered one of Wall Street’s savviest investors, signals the increasing might of Facebook, which has already been bearing down on giants like Google. All this new money will give Facebook more firepower to steal away valuable employees, develop new products and possibly pursue acquisitions. This may also serve as an opportunity for earlier shareholders, including Facebook employees, to cash out at least some of their stakes.