Lenoramo02: Facebook Valuation Jumps to $65 Billion ? General Atlantic Purchases Shares from Former Employees

Friday, March 4, 2011

Facebook Valuation Jumps to $65 Billion ? General Atlantic Purchases Shares from Former Employees

And you thought that Facebook was overpriced at $50 billion! It seems that investors will go to all lengths to purchase shares in the company. General Atlantic has a track record of making investments in successful growth equity stories.

“The valuation of Facebook is taking another leap, according to a report Thursday by CNBC.

General Atlantic, a $17 billion investment firm, agreed to buy one-tenth of 1% of Facebook in a deal that values the social-networking website at $65 billion, CNBC?s David Faber said, citing unidentified people with knowledge of the transaction.

General Atlantic is buying about 2.5 million shares of stock from former employees of Facebook. The deal needs to be approved by Facebook so it hasn?t closed yet, Faber noted.

Earlier this year, a fund organized by Goldman Sachs Group Inc. (GS 164.49, +2.80, +1.73%) invested more than $1 billion in Facebook at a $50 billion valuation.

That means the value of Facebook has jumped 30% in about six weeks, CNBC?s Faber noted.

General Atlantic, founded in 1980, makes equity investments in six high-growth sectors, including Internet and media.

The firm?s current investments include: Gilt Groupe, which sells luxury goods and services online; Privalia, an online retailer; SouFun, an online Chinese real-estate portal; and Kaspersky Lab, a security software company.

General Atlantic also made early-stage investments in E-Trade Financial (ETFC 15.93, +0.35, +2.25%) , Priceline.com (PCLN 464.79, +15.61, +3.48%) and Lenovo (HK:992 4.71, +0.01, +0.21%).”