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Facebook raises $500 million from Goldman Sachs, Digital Sky Technologies

US-based social networking site Facebook has raised $500 million from Goldman Sachs and a Russian investment firm Digital Sky Technologies, in a deal that values the company at $50 billion, reports New York Times.

US-based social networking site Facebook has raised $500 million from Goldman Sachs and a Russian investment firm Digital Sky Technologies, in a deal that values the company at $50 billion, reports New York Times.

Under the terms of the deal, Goldman Sachs has invested $450 million and Digital Sky Technologies has invested $50 million. Digital Sky Technologies had earlier invested about half a billion dollars into Facebook. The deal makes Facebook now worth more than companies like eBay and Yahoo.

The new money is expected to give Facebook more firepower to steal away valuable employees, develop new products and possibly pursue acquisitions. The investment may also allow earlier shareholders, including Facebook employees, to cash out at least some of their stakes.

Facebook received 8.9 per cent of all web visits in the US between January and November 2010. Google’s main site was second with 7.2 per cent, followed by Yahoo Mail service, Yahoo’s Web portal and Google-owned video networking site YouTube.

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