Facebook on Tuesday announced that it has received $200 million investment from a Russian internet investment firm for a two percent stake - a deal which roughly values the social networking giant at a whopping $10 billion.
The Russian investment company, Digital Sky Technologies (DST), which is led by the Russian internet entrepreneur Yuri Milner, also asserted that it would offer to purchase at least $100 million of the website's ordinary shares from its current shareholders.
DST's offer for 1.96 percent stake in the website marks first big investment in Facebook since 2007, when Microsoft poured in $240 million for 1.6 percent stake that valued the company at an impressive $15 billion.
Since Microsoft's funding injection around a couple of years back, some investors have reportedly approached the website, but they didn't get any positive response from the company. Incidentally in April, The New York Post quoted that the company's private equity investors had estimated its worth at only $3 billion.
Facebook's chief exec Mark Zuckerberg asserted that a number of investment groups had approached the company, but DST scored over “because of the global perspective it brings, backed up by the impressive growth and financial achievements of its internet investments”.
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Facebook has also received significant capital from the owner of Hutchinson Whampoa as well. The key data here is that Facebook value has fallen down by 33 percent since Microsoft last invested in the social networking website, which is roughly what the Nasdaq Composite lost over the last year or so.
(San Jose Mercury News)
(The New York Times)