Li Ka-shing. Photo / AP
Facebook has raised US$60 million ($78.7 million) from Hong Kong billionaire Li Ka-shing, adding to the list of financial heavyweights backing the online hangout's rapid growth.
Li, 79, will receive a 0.4 per cent stake in Palo Alto-based Facebook in return for his investment, according to a person
familiar with the matter.
The cash was coming from Li's personal foundation, the person said. The billionaire's business interests, anchored by the Hong Kong conglomerate Hutchison Whampoa, were not involved.
The investment means the three-year-old start-up now has support from both the richest man in Asia and the world's largest software maker, Microsoft, which paid US$240 million for a 1.6 per cent stake in October.
With a fortune estimated at US$23 billion, Li is the ninth-wealthiest individual worldwide, based on estimates gathered in an annual survey by Forbes magazine.
The stakes acquired by Li and Microsoft imply a US$15 billion value for Facebook, which is privately held. That valuation presumes the company will substantially increase its revenue, which is expected to exceed US$150 million this year.
Facebook hopes to boost profits with new ways for advertisers to connect with its 55 million users, now the second-largest social network on the web behind News Corp's MySpace.com.
A marketing initiative called Beacon agitated users last month because it circulated potentially sensitive information about their online purchases and other activity.
Stung by the backlash, Facebook last week promised it would no longer share any information collected in the Beacon programme unless users gave their explicit permission.
- AP
