BOSTON: General Atlantic is expected to buy a 0.1% stake in Facebook, an investment which will value the social networking site at $65 billion. The General Atlantic investment involves the purchase of a block of roughly 2.5 million shares of stock from former Facebook employees, a report said.
While the deal between General Atlantic and the shareholders has been agreed to, it requires the approval of Facebook and so has not yet been closed, the report said. The last major investment in Facebook, made in January, had valued the company at $50 billion.
The company had said it raised $1.5 billion in a financing round led by Goldman Sachs and Digital Sky Technologies. The latest investment, which values the company at $65 billion, means that the social networking site's value has grown by 30% in less than two months. General Atlantic mostly makes investments of $50 million to $500 million in private and public companies. The firm has $17 billion in capital under management. Companies in the firm's investment portfolio include luxury goods seller Gilt Groupe and software company Kaspersky Lab.
While the deal between General Atlantic and the shareholders has been agreed to, it requires the approval of Facebook and so has not yet been closed, the report said. The last major investment in Facebook, made in January, had valued the company at $50 billion.
The company had said it raised $1.5 billion in a financing round led by Goldman Sachs and Digital Sky Technologies. The latest investment, which values the company at $65 billion, means that the social networking site's value has grown by 30% in less than two months. General Atlantic mostly makes investments of $50 million to $500 million in private and public companies. The firm has $17 billion in capital under management. Companies in the firm's investment portfolio include luxury goods seller Gilt Groupe and software company Kaspersky Lab.
ROHIT KALIA
PGDM 2ND SEM
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