Facebook Receives $1 Billion from Goldman Sachs Overseas Offering; Digital Sky Technologies and Goldman Sachs Also Recently Made $500 Million Direct Investment

Investment Values Facebook at $50 Billion

PALO ALTO, Calif., Jan. 21, 2011 /PRNewswire/ -- Facebook today announced it has raised U.S.$1.5 billion at a valuation of approximately $50 billion.

The transaction consisted of two parts. Today, Goldman Sachs completed an oversubscribed offering to its non-U.S. clients in a fund that invested $1 billion in Facebook Class A common stock. In December, Digital Sky Technologies (DST), The Goldman Sachs Group, Inc., and funds managed by Goldman Sachs invested $500 million in Facebook Class A common stock at the same valuation.

"Our business continues to perform well, and we are pleased to be able to bolster our cash position with this new financing," said David Ebersman, Facebook's chief financial officer. "With this investment completed, we now have greater financial flexibility to explore whatever opportunities lie ahead."

The investment generated a significant number of questions from interested parties and Facebook has addressed the most common ones below.

Why did Facebook raise this money?

DST and Goldman Sachs approached Facebook to express their interest in making an investment, and Facebook decided it was an attractive opportunity to bolster its cash reserves and increase its financial flexibility with limited dilution to existing shareholders.

Why did Facebook choose to raise $1 billion in the overseas offering?

Under the transaction's terms, Facebook had the option to accept between $375 million and $1.5 billion from the Goldman Sachs overseas offering, at the discretion of Facebook. While the offering was oversubscribed, Facebook made a business decision to limit the offering to $1 billion.

What are Facebook's plans for the proceeds of this transaction?

There are no immediate plans for these funds.  Facebook will continue investing to build and expand its operations.

Does this investment mean that Facebook will have more than 500 shareholders?

Even before the investment from Goldman Sachs, Facebook had expected to pass 500 shareholders at some point in 2011, and therefore expects to start filing public financial reports no later than April 30, 2012.

About Facebook

Founded in February 2004, Facebook's mission is to give people the power to share and make the world more open and connected.  Anyone can sign up for Facebook and interact with the people they know in a trusted environment.  Facebook is a privately held company and is headquartered in Palo Alto, Calif.

Facebook® is a registered trademark of Facebook Inc. Other names may be trademarks of their respective owners.

SOURCE Facebook

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