By Mariel S. Clark
DNAinfo News Editor
MANHATTAN — Financial giant Goldman Sachs has invested $450 million in the popular social networking site Facebook in a move that puts the site's worth at $50 billion, according to reports.
As part of the deal, Goldman reportedly may invest $1.5 billion of their clients' money in the social networking site, sources told the New York Times' Deal Book.
The pairing gives Facebook more access to capital without having to surrender control of the company by making it publically traded, something CEO and co-founder Mark Zuckerberg has said wouldn't happen any time soon, the paper reported.
The deal comes as the Securities and Exchange Commission is reportedly looking into the trading of privately-held shares in social networking companies to see if such deals improperly circumvent public disclosure requirements, the Times reported.
SEC rules state once a company has 500 shareholders it must disclose some financial information even if it hasn't filed for an initial public offering, the paper reported.
Goldman's investment may allow Facebook to bypass the rule because Goldman would be considered a single investor despite potentially combining investments from thousands of clients, the Times reported.
Facebook also secured $50 million from Russian firm Digital Sky Technologies; the investments put Facebook's value higher than those of eBay, Time Warner and Yahoo, according to the Times.
The Wall Street company has a history of pairing up with hot up-and-comers like Ford, Ralph Lauren and eBay, according to the paper.
