Facebook flogs stake to Russians

Zuckerberg says yes to Yuri

27 May 2009 10:34 GMT / By Amy-Mae Elliott

Following on from the news we brought you that an offer was on the proverbial table, Facebook has accepted a Russian company's $200 million investment deal.

The social networking site has sold a 1.96% stake for what works out as around £126 million to a Russian internet firm called Digital Sky Technologies run by entrepreneur Yuri Milner.

The price paid for the percentage values Facebook's overall worth at $10 billion, somewhat less than the 2007 Microsoft valuation that set the value at $15 billion when it nabbed a 1.6% stake.

Facebook boss Mark Zuckerberg said, "A number of firms approached us, but DST stood out because of the global perspective they bring".

Despite reports before the deal was signed suggesting otherwise, Facebook has confirmed that the Russian company would not be represented on its board or hold special observer rights.

Full tags

Biz, Facebook, Acquisitions, Digital Sky Technologies