|code: 228583||Date: 2011/02/27||source: Dawnwires|
Saudi King Abdullah to buy Facebook for $150 billion to end the revolt
Left with no option, Abdullah advised by Goldman Sachs has decided to buy out Facebook and “clean out the weeds”. The offer on the table is $150 billion. Facebook balance sheet was shown to King Abdullah and his kingdom advisors had mentioned that it is not even worth $1 billion given that it generates no profit. But the King threw the report into the dustbin and fired his advisors and decided to hand over the investment banking mandate to Goldman Sachs who put the value at $150 billion. The deal will be all cash. It is worthwhile to remind our readers that Goldman Sachs had invested into Facebook at an unimaginable $50 billion valuation.
According Goldman report, the many advantages of buying out Facebook far outweighs the cost of the transaction. Goldman Sachs made a presentation to King Abdullah of how the facebook could be used to cement his position for ever. Never again will his kingdom see another revolt. The presentation also involved some Facebook pages of bikini clad models profile among other profiles. Sources reveal that King Abdullah had made up his mind immediately and spoke to Lloyd Blankfein to complete the transaction as soon as possible.
We are yet to hear back from Mark Zuckerberg on the offer though. But most analysts believe that Zuckerberg will not take the offer and will wait for King Abdullah to up the offer to at least $500billion. In the meanwhile king Abdullah has now logged on the Facebook and was buzy profiling some of the models in the Goldman Sachs presentation.
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