The clout of Facebook continues to grow as Goldman Sachs has teamed up with a Russian investor to put $500 million into the social networking company. This investment, which values the company at $50 billion (putting it ahead of eBay, Yahoo and Time Warner) shows not just the rising in importance of the social networking company, but it also shows that Wall Street investors are taking companies like this more seriously.
When you think back to the early days of Google, they were kind of ignored by Wall Street investors, until it was time to go public, said Chris Sacca, an angel investor in Silicon Valley. This time, the Street is smartening up. They realize there are true growth businesses out here. Facebook has become a real business, and investors are coming out here and saying, We want a piece of it.
Source: Dealbook
