Elevation Partners Increases Facebook Stake with $120 Million Investment

Facebook investor Elevation Partners threw more love at the company, snapping up $120 million in Facebook shares on the secondary market, valuing the social networking giant at $23 billion, according to a Reuters report. The investment brings Elevation's stake in Facebook to 1.5% and marks the second chunk of stock that it's acquired through the secondary market.

Back in November, Elevation paid $90 million to private Facebook investors who were selling their shares in the secondary market. At the time, that investment reflected a $9 billion valuation of the company. The report notes that based on a blending of the two investments, Facebook has a blended valuation of $14 billion.

The most recent purchases were reportedly made over the past couple of months, and follow Facebook's 2009 financial performance in which it generated between $700 million to $800 million in revenues, according to the report.

While Facebook does not receive the direct benefit of Elevation Partner's investment, having a high-profile investor on board does further boost its cache should, if, or when the company decides to launch an IPO. Elevation partners include noted Silicon Valley investor Roger McNamee, Apple's former long-time chief financial officer Fred Anderson and U2 singer Bono.