Online social network Facebook.com has closed a $60 million investment by Li Ka-shing through the billionaire Hong Kong tycoon's foundation, a source familiar with the deal confirmed on Monday.
The source said the deal, which values Facebook on the same $15 billion terms as
Li-backed companies such as Hutchison Whampoa and TOM Group were not involved, the source said.
The stake gives Li a 0.4 percent share of Facebook. Microsoft's holdings represent another 1.6 percent.
The All Things Digital blog, owned by Wall Street Journal publisher Dow Jones & Co., reported the deal on Friday.
A Facebook spokesman declined to comment. Spokesmen for Hutchison and Li's foundation also declined to comment.
Earlier on Monday, TOM denied it had invested in Facebook after reports of the investment by Li, TOM's major shareholder, helped push its shares 48 percent higher in Hong Kong.
"There is speculation that Li's investment could translate into closer ties or a partnership between TOM and Facebook," an analyst with a U.S. investment bank said of TOM's leap. "But I believe it's too early to talk about any co-operations."
Founded in 1980, the Li Ka Shing Foundation has focused on funding a variety of health, education, and environmental projects in recent years.
But it also has taken stakes in various Internet projects, including
Facebook opened the investment round to a variety of partners but only Microsoft and Li's foundation have participated, the source said.
Providence Equity Partners, a $21 billion media-focused private equity firm, looked at joining the latest round but walked away, said a second source familiar with those negotiations, citing the high valuation Facebook had sought.
In prior rounds dating back to 2004, Facebook has taken about $40.7 million from venture capital investors including PayPal co-founder and former CEO Peter Thiel along with Accel Partners, Greylock Partners, and Meritech Capital Partners.
©2007 CNET Networks, Inc. All rights reserved. CNET , CNET.com , and the CNET logo are registered trademarks of CNET Networks, Inc. Used by permission.
