China needs to shop for a large chunk of Facebook, a supply at a fund that buys stock from former Facebook staff tells us.
This supply learned of China’s interest when it approached him to visualize if he may facilitate place along a stake massive enough “to matter.”
Seperately, a second supply tells us there’s a rumor going around Facebook that Citibank is at this terribly moment making an attempt to accumulate the maximum amount as $1.2 billion value of Facebook stock on behalf of 2 sovereign wealth funds – China’s and another from the center East. Another supply from an investment bank that’s terribly influential in Silicon Valley says he is conjointly heard a rumor regarding Citibank’s interest on behalf of China.
Representatives from Facebook and Citibank declined to touch upon this story. we have a tendency to reached out to China’s investment cluster, however haven’t heard back.
Word that China, a state that actively combats privacy on-line, needs to shop for an enormous stake in Facebook is sure to provoke thus me concern amongst the 700 million or so folks that trust the positioning with their photos and on-line activity.
There’s no need for such concern. For one, even a billion dollar stake is not a awfully massive stake in Facebook, these days. the corporate is predicted to IPO at a $100 billion valuation. for an additional, China would be shopping for non-voting stock and would haven’t any say in Facebook’s operations. and eventually, it is not like shareholders in Facebook have some special privilege that permits them to visualize what users do or saying.
Importantly, sovereign wealth funds are pretty distinct from their governments.
Because it is a non-public company, Facebook can have to be compelled to approve any sale of its stock to China. we have a tendency to imagine it’ll. it has been reported that Mark Zuckerberg would really like Facebook to maneuver into China. One massive reason yank corporations stumble in China is that the govt tends to favor locals when it involves regulation. a method to form positive that does not happen is to permit the Government to have a stake.