Just when some people were beginning to doubt whether Facebook was really worth $15 billion, the richest man in Asia has made an investment in the social-networking site that appears to back up that valuation. The move has fueled speculation that more Asian investment in the company is coming soon.
Li Ka-shing, the head of a Hong Kong conglomerate with some 250,000 employees, invested $60 million in Facebook for a .04 percent share of the company, the Wall Street Journal’s All Things Digital blog reported Friday. That puts Facebook’s valuation on track for $15 billion. Li also has an option to invest another $60 million in Facebook.
Microsoft invested $240 million in Facebook recently for 1.6 percent of the company, generating the $15 billion valuation. Neither Li nor Microsoft received a seat on Facebook’s board.
According to Forbes, Li’s companies, Cheung Kong and Hutchison Whampoa, cover a diverse range of industries, including real estate, cell phones, retail, electricity, and container terminals, making Li the richest man in Asia and the 10th richest person in the world.
Tom Group Soars on Rumors
The Journal’s Kara Swisher reported that Li made the Facebook investment through his private foundation, not through any of his companies. Li is the major investor in Hong Kong’s Tom Group, and that fact — plus one line in Swisher’s report — appears to have sent shares in Tom Group soaring Monday. TOM ended the day up 23 percent, even though it denied making any investments in Facebook.
Li’s investment in Facebook “might give Tom a leg up in possible partnerships with Facebook in China,” sources told Swisher. If the deal does materialize, it could be a boon for Tom’s online media portal, one of the top Internet sites in mainland China.
Tom’s businesses also include outdoor advertising, television, and book and magazine…