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$200M Russian Investment Values Facebook at $10B

By the Associated Press

Posted May 26, 2009 11:49 AM CDT

(AP) – Facebook is getting a $200 million investment from a Russian Internet investor that values the social networking company at $10 billion. The investment gives Digital Sky Technologies a nearly 2% stake in the Palo Alto, California-based company's preferred stock.

The deal presumes the company is worth less than the $15 billion valuation implied by Microsoft's 2007 investment, even though Facebook has grown since then. However Facebook's own appraisal after the Microsoft deal gave the company a market value of about $3.7 billion, according to details revealed in a legal settlement.

In this photo illustration the Social networking site Facebook is displayed on a laptop screen on March 25, 2009 in London, England.
In this photo illustration the Social networking site Facebook is displayed on a laptop screen on March 25, 2009 in London, England.   (Getty Images)
Facebook.com's mastermind, Mark Zuckerberg smiles at his office in Palo Alto, Calif., in this Monday, Feb. 5, 2007 file photo.
Facebook.com's mastermind, Mark Zuckerberg smiles at his office in Palo Alto, Calif., in this Monday, Feb. 5, 2007 file photo.   (AP Photo/Paul Sakuma, FILE)
In this photo illustration the Social networking site Facebook is displayed on a laptop screen on March 25, 2009 in London, England.
In this photo illustration the Social networking site Facebook is displayed on a laptop screen on March 25, 2009 in London, England.   (Getty Images)
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COMMENTS
Showing 1 of 1 comment
drlarrymitchell
May 26, 2009 6:04 AM CDT
That is, until Facebook starts bleeding users due to all the malware their social networking site allows onto users computers.

Copyright 2012 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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