* GSV Capital buys small stake in Facebook
* Shares purchased at about $29.28 each
* GSV shares up 20.3 percent
(Adds more background about Facebook and GSV Capital, GSV
NEW YORK, June 27 Investment fund GSV Capital
Corp (GSVC.O) has taken a small stake in Facebook that values
the world's No. 1 social networking site at about $70 billion.
The investment fund said on Monday that it had bought
225,000 shares in Facebook at an average price of $29.28 each.
Facebook has roughly 2.4 billion outstanding shares,
according to the latest data from secondary market company
Facebook executives have said it is inevitable that they
will take the company public, but have not specified a date.
Founded in a Harvard dorm room in 2004 by Mark Zuckerberg,
Facebook threatens Internet stalwarts like Google Inc (GOOG.O)
and Yahoo Inc as it becomes one of the most popular
destinations on the Web.
It is poised to overtake Yahoo (YHOO.O) for the biggest
slice of U.S. online display advertising dollars this year,
with more than $2 billion, according to research firm
Facebook is one of the most anticipated initial public
offerings, with investors to clamoring to get a piece of the
social networking site with more than 500 million users.
At $70 billion, Facebook would be valued slightly below
Amazon.com Inc (AMZN.O), Cisco Systems Inc (CSCO.O) or
Hewlett-Packard Co (HPQ.N).
But concerns about Facebook's white-hot growth have
surfaced in recent months. A group of Facebook shareholders is
trying to sell $1 billion of stock on the secondary market in a
transaction that also would give the company a value of about
$70 billion, Reuters reported in April. [ID:nN27185713].
Woodside, California-based GSV Capital invests in
high-growth, venture capital-backed companies. The $6.6 million
investment in Facebook represents about 15 percent of GSV's
total portfolio, the company said in a statement.
Representatives of Facebook and GSV Capital were not
immediately available for comment.
Shares of GSV Capital were up 20.3 percent at $12.35 in
(Reporting by Jennifer Saba, editing by Gerald E. McCormick
and Lisa Von Ahn)