Cramer: Facebook is Worth $65 Billion, Beijing Next Exchange to Merge
General Atlantic, a $17 billion investment firm, will soon become the latest investor in Facebook, buying one tenth of one percent of the company in a deal that values the social networking giant at $65 billion, according to people with knowledge of the transaction.
Mad Money's Jim Cramer said on Friday's Stop Trading! that General Atlantic is excellent at valuing companies and that Bill Ford in particular, who runs General Atlantic, is "a terrific investor.
"Whatever he's paying, I'd pay at least 10 percent more, so ... $65 billion is obviously a good price and they will end up making a lot of money on this," Cramer said.
Facebook represents 600 million people, he continued, and Facebook could easily make more revenues than almost any company that is currently in business in technology.
Cramer also weighed in on news Friday that the chief executive of Goldman Sachs , Lloyd C. Blankfein, has emerged as a possible witness in the insider trading trial of Raj Rajaratnam.
, Lloyd C. Blankfein, has emerged as a possible witness in the insider trading trial of Raj Rajaratnam.
Mr. Blankfein has agreed to testify for the government in the trial of Rajaratnam, a founder of the Galleon Group hedge fund, according to a person with direct knowledge of the case who spoke only on the condition of anonymity. Rajaratnam’s trial is scheduled to start on Tuesday in federal court in Manhattan.
Blankfein's willingness to testify is a good thing, not bad, Cramer said.
"The big story would be if he said 'I'm not gonna do it, come get me,'" Cramer said.
Also on Cramer's radar, the NYSE Euronext merger. NYSE Euronext agreed last month to be acquired by Deutsche Boerse. The companies said if the deal is completed, Duncan Niederauer will be CEO, and Deutsche Boerse' CEO Reto Francioni will be chairman.
The merger is a good one, Cramer said, because it's good to diversify away from the American cash business.
"People don't understand that we're going toward a one-world exchange, and that one-world exchange is more likely than not going to be the New York Stock Exchange in combination with Deutsche," Cramer said. "They'll have France, they'll have Germany, they'll have Brazil — I think they're going to have Beijing and I think Beijing's next."
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