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GSV Capital Eyes Facebook, Invests $6.6 Million

The GSV Capital Corporation has purchased a tiny chunk of shares in the leading social networking company Facebook.

According to the Wall Street Journal (opens in new tab), the publicly traded investment company on Monday announced that it has acquired 225,000 shares in Facebook at a price of $29.28 each share.

GSV chief executive officer Michael Moe revealed that the company invested a total amount of $6.6 million; approximately 15 percent of its market value, in the Palo Alto, California-based Facebook Inc. Interestingly, at the time of the announcement, shares of GSV were reported to be up by 40 percent.

Moe, in a telephonic interview to CNN Money (opens in new tab), revealed that the firm has evaluated Facebook Inc. at $70 billion which is $20 billion more than the valuation done by Goldman Sachs in the month of January this year.

“Facebook is a one-of-a-kind business which has created enormous network effects. With over 650 million people on its platform, or approximately 1/10 of the world’s population, Facebook has established itself as a next-generation social communications platform” stated Moe.

According to experts, the deal still has lose ends as Facebook has not made any announcement about going public and there is a relevant clause of "30-day Right of First Refusal expiration”, which can be used in time.

Latest research has revealed that Facebook might have 750 million users by now, expecting the company to file for an IPO in the nearest future.

Ravi Mandalia
Contributor

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.