facebook
twitter
rss
account
search
search
 

Russian firm invests in Facebook

May 26, 2009 at 4:57 PM   |   Comments

PALO ALTO, Calif., May 26 (UPI) -- U.S. Internet giant Facebook said a Russian firm, Digital Sky Technologies, has purchased 1.96 percent of the company for $200 million.

The deal values Facebook's preferred stock at $10 billion, The New York Times reported Tuesday.

In October 2007, a similar deal with Microsoft valued Facebook's preferred stock at $15 billion, but Facebook founder and Chief Executive Officer Mark Zuckerberg called the Microsoft deal something of an anomaly.

That deal was made at the "absolute peak of the market," he said.

"Relative to the economic conditions for when the Microsoft deal happened and that being more of a strategic partnership than a straight financial investment, we feel really good about the progress we've made," Zuckerberg said in a conference call.

He said the new financing "will serve as a cash buffer to support our continued growth." Facebook, however, was not thinking of going public soon. "We'll do it when it's right for the company," Zuckerberg said.

Digital Sky Technologies has investments in Web companies that command about 70 percent of the Russian-language Internet. It also has plans to buy $100 million in additional Facebook stock from other sources, the newspaper said.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Report: Billionaires are hoarding mountains of cash
2
Gazprom: Hungary ready for South Stream Gazprom: Hungary ready for South Stream
3
Canada decides to retire two guided missile destroyers Canada decides to retire two guided missile destroyers
4
Obama called on to ban oil trains Obama called on to ban oil trains
5
XXL Magazine to end print edition after 17 years XXL Magazine to end print edition after 17 years
Trending News
Video
x
Feedback