Facebook forced to disclose financials

Facebook will be forced by law to start coughing up details of its financial performance or go public by April 2012, according to a published report.

The Wall Street Journal reported Thursday that privately held Facebook plans to cross the 500-shareholder threshold this year, citing a memo being distributed to potential investors.

That will trigger a Securities and Exchange commission rule requiring financial disclosures, even if Facebook still hasn't had a formal IPO.

The news comes just two days after a report in The New York Times that Goldman Sachs and a Russian investor have handed more than $500 million for a stake in the company.

The infusion gives Facebook a value of $50 billion - twice that of Yahoo.

Goldman declined to comment on the report. Facebook did not immediately respond to a request for comment.

(Published by NZ Herald - January 07, 2011)