Facebook Now Worth $50 Billion, on Paper (GS)

The craze surrounding Facebook is getting even more out of hand, this time with Wall Street setting the valuation of the company at some $50 billion.  A fresh investment from Goldman Sachs Group Inc. (NYSE: GS) along with a Russian investor, Digital Sky Technologies, will be for $500 million.

In its DealBook by Anrew Ross Sorkin, The New York Times, reported the terms and noted that the capital infusion may allow Facebook to hire away key talent, make acquisitions or develop new products and services.  It is also reported that this may allow at least some employees to cash out on their stakes.

The SEC has been well published about an inquiry into Facebook that effectively revolves around a private company sloshing stock around with stakes for sale while not being registered as a public company with many shareholders.

What is most interesting above all is how Facebook is now the top destination on the web by some accounts.  Alexa.com still shows Facebook as #2 behind Google, but different calculations are made by different site tracking statistic providers.  All of this while making your privacy a thing of the past and eating up more spare time than suffering from amnesia.

There is a great tale about social networks… MySpace was where you talked about what you’d be when you grow up, LinkedIn is where you find your job, and Facebook is how you lose your job!

JON C. OGG