Around the Net

Russian Firm's Offer Values Facebook at $10 Billion

Russian-based investment group Digital Sky Technologies has offered to invest $200 million Facebook Inc., giving the Web's largest social network a valuation of $10 billion, the Wall Street Journal reported late last week. It's still unclear whether Facebook will accept the offer, which comes as the social network has been talking with several venture capital and private equity firms about raising money. According to one source, the Russian firm's offer is the latest of many the company has received.

Under the terms of the proposal, DST would also offer to buy between $100 million and $150 million in Facebook common stock at a $6.5 billion valuation, an amount that would likely be used to buy shares from Facebook employees eager to sell.

DST, owned by Russian businessman Yuri Milner, owns pieces of several Russian Web companies, including Mail.ru and a Polish social networking site. If Facebook accepts the offer, it would be the fist significant round of funding the company raised in a year and a half. Towards the end of 2007, Microsoft purchased a 1% stake in the firm at a $15 billion valuation.

Read the whole story at The Wall Street Journal »

Next story loading loading..