Bono's Investment In Facebook Earns Him Big Money
Published: January 14, 2011 - 1:56pm
The popular frontman from the Irish band U2 has earned hundreds of millions of dollars due to the social networking site Facebook; which recently garnered the big screen treatment.
The U2 singer's decision to invest in the online social site has earned him a huge pay off of $728 million after Facebook received funding from Goldman Sachs and Digital Sky Technologies.
Facebook was founded seven years ago by Mark Zuckerberg and the U2 frontman bought 1.5 percent of the company for $195 million last year as the managing director of the investment firm Elevation Partners.
Bono can apparently reap in huge when he cashes in his share when the privately-held website is floated on the stock exchange, which might be delayed due to the investment made by Goldman Sachs.
According to the Telegraph, Nate Elliott, who is the principal analyst for Forrester Research, says that the company didn't need the funding and "that the deal was about re-positioning Facebook as tech superbrand, as well as giving the company the chance to give some money back to initial investors and employees without floating."
"I don't think the Goldman Sach's investment has happened because Facebook needs the money operationally," he said "It has enough money to build the business in the way it needs to be developed from this point on. The investment happened, in our opinion, so that Facebook had a way of letting early investors and employees take money out of the company without it needing to IPO. We have tried to find operational costs it might need to cover while building the business, but its advertising revenues more than cover their costs."