China’s sovereign wealth fund, China Investment Corp (CIC), could be on the verge of acquiring a stake in Facebook, if a report in Business Insider is to be believed.
According to Business Insider sources, financial firm Citibank has been trying to obtain as much as US$1.2 billion worth of Facebook stocks on behalf of two sovereign wealth funds - one from China and another from the Middle East.
The Business Insider article added that the news would go in line with recent comments made by Facebook co-founder Mark Zuckerberg, who expressed his desire for the company to enter the Chinese market.
A purchase of Facebook stocks by the Chinese sovereign wealth fund could open up an avenue for the social networking giant to penetrate the market.
However, rumours of the purchase have raised concern among netizens in regards to the sensitive and private information that Facebook currently stores on its site.
Facebook Chief Operating Officer Sheryl Sandberg has also been reported to be “wary about the compromises Facebook would have to make to do business there (in China).”
However, Facebook’s co-founder and Chief Executive Officer appears to be determined for Facebook to access the world’s largest online community. Zuckerberg visited China last December and will return again in September this year in order to push for Facebook’s approval in the country.
The Business Insider report also dismissed fears of any potential privacy infringement by the Chinese Government.
Importantly, sovereign wealth funds are pretty distinct from their governments.”
Story from Business Insider