Facebook market cap tops $200bn
Social media giant Facebook has reached the symbolic market capitialisation figure of £200bn. The share price of the California-based company rose by 0.8% on Monday to $77.89, giving the company a value of $200.9bn. Facebook is now worth more than Coca Cola. Significantly, Facebook has reached this milestone in a shorter time after its IPO than it took big rival Google. While still far larger than its younger rival—Google was valued at $400.4bn yesterday—Facebook will take confidence in the fact that it has grown faster. Founder and CEO Mark Zuckerburg will by buoyed by the implicit support given to his leadership by investors. In recent years, Facebook has embarked on a series of strategic acquisitions of social media startups that threatened its dominance in social media. Instagram and Whatsapp are the highest profile companies to be purchased by Facebook, both of which seemed expensive at the time. Reaching the $200bn market capitalisation however appears to have vindicated these premium purchases.
Dubai unveils $32bn plan for aviation mega-hub in desert
The government of Dubai has announced that it intends to invest $32bn in a project to create the world’s largest aviation hub. Already a major hub in the routes between Europe and Asia, Dubai plans to massively expand its second airport. Work on the airport is due completion in the mid 2020s. Ruler Sheikh Mohammed bin Rashid al-Maktoum has given his approval to the project that will become home to Emirates airlines, the rapidly expanding Gulf-airport. The airline industry plans a major role in Dubai, contributing up to 30% of the state’s GDP, which has given investors confidence in the project. Dubai had announced major plans to expand its airport infrastructure in the past, but these were postponed in the wake of the 2008 financial crisis, when Dubai suffered as it found that lines of credit were suddenly restricted. Having emerged from that period, Dubai now looks set to continue its focus on major infrastructure projects to turn itself into an important global location.