News
Facebook borrows £50m
Categories: Web 2.0
12 May 2008
Popular social networking site, Facebook, has borrowed $100 million (£50 million) to expand its infrastructure, it has been reported.
The site has attracted more than 100 million (109.2 million) monthly users worldwide and created the need for extra investment.
Chief financial officer, Gideon Yu, told Business Week: "It will be entirely used for servers."
The popularity of social networking sites is driving internet expansion and causing some reported slowdowns.
Vast amounts of data is transferred to personal pages, blogs, websites and news channels, something the web's infrastructure is expanding to deal with.
"The single biggest factor for success is having available capital to build giant computing facilities," vice-president, Forrester Research, Frank Gillett told Business Week.
The UK has the highest membership of social networks in Europe and by 2012 the figure is forecast to almost triple, research by analysts, Datamonitor has revealed.
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