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Russian investment values Facebook at $10 billion

Russian investment values Facebook at $10 billion

Facebook yesterday announced that Digital Sky Technologies, a Russian investment firm, has purchased a 1.96 per cent stake for $200 million.

Facebook yesterday announced that Russian Internet investment outfit Digital Sky Technologies has made a $200 million investment in the social networking site in exchange for a 1.96 per cent stake.

This means Facebook is valued at just over $10 billion (£6.41 billion), which is 50 per cent lower than it Facebook’s valuation when Microsoft invested in the social networking behemoth in 2007. Admittedly, market conditions were much better at that time, but even then many felt the valuation was lofty.

DST will not have a seat on the board in return for its investment, but the $200 million worth of shares it acquired are preferred, just like Microsoft’s.

The Russian investment outfit is also planning to buy another $100 million of common stock from existing employees and common stock holders. These shares are understood to have a different valuation to the preferred shares it has just purchased, as they are part of a different transaction – it’s unclear on the valuation of these at this time, but it’s understood to be a lower price.

This investment demonstrates Facebook’s ongoing success at creating a global network for people to share and connect,” said Facebook CEO Mark Zuckerberg in a statement.

We’ve worked hard to bring more than 200 million people – 70 per cent outside of the US – onto Facebook to share with friends, family and co-workers. A number of firms approached us, but DST stood out because of the global perspective they bring – backed up by the impressive growth and financial achievements of their Internet investments. We’re looking forward to working with the DST team,” he added.

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9 Comments

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Bauul 27th May 2009, 13:55 Quote
Aww diddums, only $10 billion for a company with no solid revenue streams.
B1GBUD 27th May 2009, 14:41 Quote
The world has gone mad
OWNED66 27th May 2009, 15:10 Quote
WAIT WUT ?!
perplekks45 27th May 2009, 16:54 Quote
Companies selling personal information are valued waaaaay too highly in this world. Wrong, just plain wrong.
When did privacy die in the intertubes?
thehippoz 27th May 2009, 17:15 Quote
and gambling in the stock market another 100m.. wow
BlackMage23 27th May 2009, 21:47 Quote
This feels a bit like how things were before the dot com bubble burst.
Lots of companys had really high valuation, but didn't have much to backup that valuation.

I just have a bad feeling that facebook could "pop" one day. Maybe i'm wrong, but I wonder how many more people feel the same?
thehippoz 27th May 2009, 22:03 Quote
facebook well.. it sucks- but I can see why peeps like it.. thing that's bad about it is you can see everyone that person knows if you get in his list- least on myspace they are having hookup parties and everyone's invited.. the internet has become the new bar and craigslist was the street corner until that rich psychopath ran amok

I mean in college there was guys that's all they did was hook up with girls on myspace.. they would get on the machines and it was like crack.. instant messaging has gone to cell phones- I dunno I just stay out of it all.. there was a girl last year up at the school who broke up with her boyfriend and he posted a bunch of naked pics of her on his page..

it's only going to get bigger/worse imo.. and twitter omg do I really want to know your dog just took a sh :D

I like technology, but pages like facebook are trying to be the george foreman grill, privacy does it even exist for some people anymore.. the cell phones I like alot more than computers- I don't get how so many people do online banking and all this very personal stuff- easily accessible by anyone with half a brain
yodasarmpit 27th May 2009, 22:20 Quote
I just cant see how they will ever make a return on that investment, ever!
sub routine 28th May 2009, 12:48 Quote
my god does no one know what teh russian mafia and money laundering are?


Anyways FB sux a$$. They think like any other bullsh1t organisation, all your cherished memories will become part of our collective and they will belong to us forever no matter what ??? ...pffft. poke it!!
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