The social media giant has claimed Friday that it has raised $1.5 million frominvestors Goldman Sachs and Digital Sky Technologies. The valuation of the company had risen to approximately $50 billion after the investment deal.
Facebook also confirmed that it is going to start filing public financial reports by next year April in order to create a cushion for its upcoming IPO.
According to regulatory framework, when a company has more than 499 shareholders, it is mandatory for the company to publicly disclose is financial results and file quarterly reports to the US Securities and Exchange Commission. And, since Facebook may soon cross the 500 shareholder benchmark required revealing the fiscal results. Thus, Facebook is preparing in advance for the same and that's how the IPO move has take the shape.
Media coverage intensification:
In a press release, the Facebook made certain issues clear, which cropped up after Goldman Sachs expressed its concerns over the ‘intense media coverage' it started getting due to the Facebook's celebrity status.
"DST and the Goldman Sachs approached Facebook to express their interest in making an investment, and the Facebook decided it was an attractive opportunity to bolster its cash reserves and increase its financial flexibility with limited dilution to existing shareholder," Facebook said in a press release.
"Facebook had the option to accept between $375 million and $1.5 billion from the Goldman Sachs overseas offering,"
"While the offering was oversubscribed, Facebook made a business decision to limit the offering to $1 billion," added Facebook. No matter what, Facebook is on the roll.
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