Social networking giant Facebook has raised $500 million from Goldman Sachs and a Russian investment firm, The New York Times has reported.
The deal values the company at $50 billion with Goldman Sachs investing $450 million and Digital Sky Technologies $50 million, according to the newspaper’s online edition. The report claimed Goldman has the right to sell part of its stake - up to $75 million - to the Russian firm.
The US Securities and Exchange Commission (SEC) is reportedly investigating the booming trade in privately held shares of popular social networking sites.
One of the big reason for this is that once a company has 500 shareholders, it has to disclose certain financial information to the public.
But Goldman is reportedly planning to launch a 'special purpose vehicle' to circumvent the rule because it would be managed by Goldman and considered as just one investor.