Facebook reportedly valued at $50bn (€37.5bn )

According to reports by the New York Times, Goldman is investing €337.252 million ($450 million) into social networking hit website Facebook, and another €37.5 million ($50 million) into Digital Sky Technologies another $50m.

Citing unnamed sources, the paper reported that the terms of the deal implied a valuing for Facebook of just over €37.5 billon ($50 billion). Goldman's involvement could also raise speculation that Facebook might float on the stock market.

A Facebook spokesperson told the BBC that the company was not commenting on the New York Times story. Goldman also declined to comment.

If the €37.5 billon ($50 billion) valuing is accurate, Facebook is worth more than eBay and Time Warner. The fresh investment is expected to be used to fund develop of new products and possibly make acquisitions, the New York Times said.

Many speculate that it may also enable Facebook employees and early investors to cash in some of their stakes.

Reports said the Securities and Exchange Commission was looking at the growth in the private market for trading in companies like Facebook, Twitter, and LinkedIn. But regulators are concerned that, with this private market booming, companies are able to circumvent public disclosure requirements.

Further scrutiny by the SEC could help push Facebook towards a public listing, although the company's founder, Mark Zuckerberg, has denied there are plans for a flotation.