Facebook Gets Russian Cash Infusion Valuing Company At $10 Billion (UPDATED)
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Facebook said Tuesday that it had accepted a $200 million cash infusion for 1.96% of the company from a Russian Investment firm, an investment which values the company at about $10 billion.
The investment comes from Digital Sky Technologies (DST) which also said it plans to offer to buy at least $100 million of Facebook common stock from existing stockholders — current and former employees.
In a conference call, still in progress, Facebook CEO Mark Zuckerberg said the company had “no specific plans” for the investment, but appreciated having a cash buffer and that it was “nice to have the flexibility.”
Asked how he could reconcile a $240 million investment by Microsoft in November, 2007 that valued the company at $15 billion, and today’s infusion, Zuckerberg said they were difficult to compare because the Microsoft deal occurred “at the absolute peak of the market” and was part of a broader strategic relationship.
“We think this is a good and fair valuation for us,” Zuckerberg said of the $10 billion figure. “We’re very happy with DST and how it’s starting and with Microsoft and how it’s gone.”
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Source: John C Abell
