Facebook gets $200m investment from Russian firm
Facebook has received a $200 million investment from Russian firm Digital Sky Technologies (DST).
In exchange for the investment, DST will receive a 1.96% stake in Facebook. The deal values the social networking site at $10 billion - well short of the $15 billion valuation Microsoft put on the company when it bought a $240 million share in 2007.
DST will also offer to purchase at least $100 million worth of Facebook stock from existing shareholders.
DST will become a passive investor, Facebook said, and there are currently no plans to offer the firm a seat on the board.
Facebook CEO Mark Zuckerberg said the investment was a demonstration of Facebook's success globally, noting that 70% of its users are outside of the US.
“A number of firms approached us, but DST stood out because of the global perspective they bring,” he said.
In a conference call, Zuckerberg insisted the investment does not necessarily mean Facebook is edging closer to an IPO, ZDNet said.