Facebook raises $100 million in debt

Facebook raises $100 million in debt

The fund will be used to buy servers and other equipment to run the site

Monday, May 12, 2008

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BANGALORE, INDIA: Amid reports that Microsoft is interested in further investing in Facebook Inc, the social networking start-up has raised $100 million in debt to buy more servers and other equipment to run the website.

Venture lending firm TriplePoint Capital is providing the fund. Experts say the funds can be used to buy 50,000 servers.

Of late, Facebook has seen phenomenal growth in visitors with the site attracting 109.2 million visitors in March, says global Internet information provider comScore Inc.

Last year, Microsoft had paid $240 million for a 1.6 per cent stake in Facebook, which expects revenue of $300 million to $350 million this year.

Facebook now has over 70 million active users and around 109 million monthly visitors.

Gideon Yu, chief financial officer of Facebook, said that the aim of raising debt is to make sure that the company is 'buffered' against any kind of downturn.

"Raising debt should be a sign that we're entering a more mature phase," he said.

The social networking site was launched in February 2004 by Mark Zuckerberg. It was initially meant for Harvard students and later became a hit.

In 2006, Yahoo offered to buy the company for $1 billion dollars, but Zuckerberg declined the offer.

©CyberMedia News

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