Facebook staff might sell fortune in stock: report

Feb 10, 2011
The logo of social networking website Facebook is displayed on a computer in London 2007. Citing "intense media attention," Goldman Sachs has decided to exclude US clients from the private offering of as much as $1.5 billion in shares of Facebook, The Wall Street Journal reported Monday.

Facebook may let employees sell up to $1 billion in shares at a price that would value the social networking service at $60 billion, technology news website All Things Digital said Thursday.

Heavy interest by large institutional investors prompted to consider freeing workers to sell a fortune in stock in the privately-held California company, according to All Things Digital.

Such a move would mean that Facebook believes its worth has jumped 20 percent since last month, when it raised $1.5 billion from investors in a private share offering that pegged its value at approximately $50 billion.

The price of the possible employee stock sale would give Facebook a bigger valuation than companies like Boeing or Time Warner.

Yet its annual revenue, primarily based on advertising, is estimated at $2 billion, compared with Boeing's $64.62 billion and Time Warner's $26.5 billion.

Facebook would be letting employees cash in on the success of the website while the privately-held firm reportedly ponders an of stock.

Facebook co-founder , who is said to own a quarter of the company, has resisted pressure to launch an initial public offering of stock. The 26-year-old was recently named Time magazine's "Person of the Year."

Explore further: Hackerspaces used to turn ideas turn into reality

add to favorites email to friend print save as pdf

Related Stories

Facebook finds powerful 'friend' in Goldman: report

Jan 03, 2011

Social-networking giant Facebook could flex its growing might after reportedly raising 500 million dollars from Goldman Sachs and a Russian firm in a deal valuing the website at 50 billion dollars.

US probe after Goldman investment in Facebook

Jan 05, 2011

A Goldman Sachs investment of nearly half a billion dollars into Facebook has spawned a probe by US regulators eager to safeguard the dividing line between public and private companies, The Wall Street Journal r ...

Facebook raises $1B more from non US investors

Jan 21, 2011

(AP) -- Facebook said Friday it has raised $1 billion from non-U.S. investors, which combined with an infusion from Goldman Sachs and Russia's Digital Sky Technologies in December, brings the haul from its latest round of ...

Facebook splits stock 5 for 1

Oct 01, 2010

(AP) -- Facebook, the world's largest online social network, said Friday it is splitting its shares five for one, so that it can give larger stock grants to current and prospective employees.

Recommended for you

Hackerspaces used to turn ideas turn into reality

1 hour ago

At HeatSync Labs, the tables are littered with computer chips, pens, pads and tools while the room is abuzz with the chatter of would-be inventors hoping to change the world—or just make cool things. They are part of a ...

China Telecom profit rises as mobile data grows

1 hour ago

China Telecom Ltd., one of the country's three main state-owned carriers, said Wednesday its profit rose 11.8 percent in the first half of the year as its Internet and mobile data businesses grew.

Snapchat valued at $10 bln

2 hours ago

US media on Tuesday reported that Snapchat was valued at $10 billion based on funding pumped into the startup by a powerhouse Silicon Valley venture capital firm.

User comments : 0