Goldman Invests in Facebook -- Report

NEW YORK ( TheStreet) -- Goldman Sachs ( GS) will invest $450 million in Facebook in a deal valuing the company at $50 billion, The New York Times reported early Monday, citing anonymous sources.

Digital Sky Technologies, a Russian investment company that has already invested half a billion dollars in Facebook, will kick in another $50 million, and Goldman can sell up to $75 million of its stake to Digital Sky Technologies, according to the report.

The investment comes as the Securities and Exchange Commission is investigating trading in shares of privately-held internet companies, including Facebook, Zynga, Twitterand LinkedIn, an investigation the Times reported last month. Investigators may be focused on whether the companies are in violation of disclosure requirements, the newspaper reported.

Goldman's wealth management arm will give its clients a chance to buy into Goldman's investment, according to the report. Still, Goldman is structuring its investment as a "special purpose vehicle," with the idea that this entity would be treated as a single investor for legal purposes. Whether such legal maneuvering will pass muster with the SEC remains to be seen, the report noted.

Citing data from Sharespost, a venue where investors can trade shares of privately-held companies, The Times says Facebook's value has tripled in the past year.

Facebook is the most visited site on the Internet, ahead of Google ( GOOG) and Yahoo ( YHOO)'s mail service, and has attracted advertisers such as JPMorgan Chase ( JPM), Adidas ( ADDYY.PK) and Coca Cola ( KO).

A Facebook spokesman declined to comment and an email to Goldman spokespeople was not returned.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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