DST invested $50 million while Goldman Sachs invested $450 million. The remaining investment came from overseas shareholders participating in Goldman Sach’s Facebook investment vehicle. The social network says that it could have raised anywhere between $375 million and $1.5 billion from the investment vehicle, but decided in the end to limit the additional funding to $1 billion.
Facebook says that it was approached by DST and Goldman Sachs about the potential investment, and “Facebook decided it was an attractive opportunity to bolster its cash reserves and increase its financial flexibility.” The social network also confirmed in its announcement that this transaction will give it over 500 shareholders, which will require Facebook to publicly disclose its financial results no later than April 30, 2012.
Facebook says that it has no immediate plans for the $1.5 billion it has in its bank, though we believe it will use that money to buy the old Sun Microsystems campus in Menlo Park, expand its staff and accelerate its acquisition strategy.