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Facebook is now Worth 50 Billion Dollars: Heading Against Google?

Posted on 04 January 2011 by author

Facebook is now growing faster than ever as with its current funding and worth.

The social networking site had gained a new funding that is worth $500 million: Goldman Sachs gave $450 million while Russian investment firm Digital Sky Technologies have $50 million. Aside from that, it has gained more than $800 million from previous five fundings and when totalled, they have raised $1.3 billion. And now that we have seen the fundings, how much do you think it’s worth.

Well, according to The New York Times, Facebook’s value is now worth a whopping $50 billion! Whew! Way, way bigger than other Internet establishments. But it does not end there.

When Goldman Sachs sealed the deal with FB, it promised that it will help raise $1.5 billion by creating a “special purpose vehicle” that will allow other people to invest on the biggest social networking site in the Internet. When this happens, it will help Facebook bypass the SEC regulation which requires companies with more than 499 investors to reveal to the public their financial statements.

Now that we know what Facebook is worth and how much they have gained, we ask now? What will they do with that big money they have now?

Well, we all know that Google is FB’s greates rival now as well as Microsoft. One of the theories that people are thinking is that it might use $2 billion of its new funding to cash out on its investors and employees. Second is all about the growth of Facebook. Since we’re pretty sure they want to beat Google as the bigges internet company, there might be plans on getting an expansion and hiring more employees.

In terms of expansion, one trusted source tells that it plans to purchase the Sun Microsystems campus in Menlo park, California from Oracle Corporation to have more room for their future plans. When it comes to hiring, Facebook should really do this as they only have around 2000 employees, which is very small for company that serves 500 million users and is worth $50 billion. This is one thing that they need to revamp in order to beat Google. Then it will also use its other funding for new acquisitions in 2011.

We hope Facebook will also feature new products since their rivals have already done that and are ruling the web more. Expansions such as emails, ads displays, news and more are what we expect Facebook will do to expand. They should not only focus on social networking and reach out to other markets as well. This is something to look forward to.



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One Comment

  1. Lorne Marr (Reply) Posted on January 6th, 2011 at 12:53 am

    Can you imagine so many investors trying to reach a final business decision or the implementation of a single plan? This can cause so many problems and the final effect may be the change of Facebook’s commitment from it’s users to it’s shareholders.

     

Sensible comments/suggestions are always appreciated.