Facebook raises $1.5bn from investors

Facebook founder Mark Zuckerberg has turned the firm into a hot investment property

Facebook has said it has raised $1.5bn (£900m) from investors, valuing the world's most popular social networking site at about $50bn.

About $1bn of the total came from overseas clients of Goldman Sachs, the Wall Street investment bank handling the share sale.

The remaining $500m came from Goldman itself, and Russia's Digital Sky Technologies.

Facebook said it could have raised more money from the oversubscribed offer.

"Our business continues to perform well and we are pleased to be able to bolster our cash position with this new financing," said David Ebersman, Facebook's chief financial officer.

"With this investment completed, we now have greater financial flexibility to explore whatever opportunities lie ahead."

The company said that it had "no immediate plans" for the proceeds from the fundraising, but would "continue investing to build and expand its operations".

It added that it would begin filing public financial reports on 30 April next year.

The New York Times reported the Goldman and Digital Sky Technologies investment earlier this month.

At $50bn, Facebook would be worth more than eBay and Time Warner.