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Facebook’s financials

revealed in wiki style leak

January 7, 2011 – 6:48AM

Facebook earned $US355 million in net income profit in the first nine months of 2010 on revenue of $US1.2 billion, according to documents that Goldman Sachs is providing to clients.

Goldman began hand-delivering copies of the 101-page private placement memorandum for the Facebook offering to its wealthy customers a little after lunchtime Thursday in New York, according to a person who received a copy.

The Goldman customer said he received a separate six-page financial statement containing information on the social networking firm.

The document provides some of the most detailed financial information to come to light about Facebook, which Goldman recently valued at $US50 billion in a separate, $US450 million funding.

The financial statements were not audited and offered little detail about how Facebook generates it revenue, said the source, who did not want to be identified because he had signed a non-disclosure confidentiality agreement.

Goldman customers seeking to buy shares in the privately held Facebook will invest money in a newly formed Delaware entity called FBDC Investors LP, according to the source. Corporate records show that FBDC Investors was incorporated in Delaware on January 5.

Goldman customers have until Friday, US time to commit to investing in the new entity and until next Tuesday to wire money to the Wall Street firm.

Goldman, which is investing $US450 million of its own capital in Facebook, is raising at least $US1.5 billion from its wealthy clients through the limited-time offering.

Investors are increasingly eager to buy shares of Facebook and other fast-growing internet social networking companies on private exchanges.

Sourced & published by Henry Sapiecha

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