Facebook valued at 70 billion dollars as new investor buys in

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Facebook valued at 70 billion dollars as new investor buys in
The Nation 2011-06-28

New York - The value of the world's largest social network Facebook was estimated at 70 billion dollars Monday when investment firm GSV Capital climbed aboard the Facebook train.

Facebook has sold about 6.6 million dollars worth of its privately held shares to the California investment fund and is believed to be preparing for an initial public offering in 2012, Bloomberg financial news service reported.

"Facebook is a one-of-a-kind business which has created enormous network effects," said Michael T Moe, GSV chief executive officer. "With over 650 million people on its platform, or approximately one-tenth of the world's population, Facebook has established itself as a next generation social communications platform."

The investment is believed to equal about 15 per cent of the portfolio of publicly traded GSV.

Facebook shares are not yet publicly traded, but the stock occasionally comes available when employees sell their stock.

When Goldman Sachs invested in Facebook earlier this year, the network's worth was put at 50 billion dollars