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: WellPoint 2Q tops Wall Street expectations

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

Sony surprises with first quarter profit

2 hours ago

(AP)—Sony Corp. reported a surprise eightfold jump in quarterly profit Thursday as sales got a perk from a cheap yen and its bottom line was helped by gains from selling buildings and its stake in a video-game maker.

Samsung profit falls as smartphone sales slow

3 hours ago

(AP)—Samsung Electronics Co. reported a bigger-than-expected fall in second quarter profit on Thursday and said it was uncertain if earnings from its handset business would improve in the current quarter.

Why let your sales force influence product prices?

22 hours ago

From the outside, you might not notice the ongoing tension within many large businesses: the battle between salespeople, on the one hand, and marketers and product managers, on the other. Because the salespeople ...

User comments : 0