BLOGS
The Channel Wire
May 26, 2009
Facebook Tuesday got a $200 million shot in the arm from Russian firm Digital Sky Technologies in exchange for preferred stock, representing a 1.96 percent equity stake in the company, a price that places the value of Facebook at $10 billion.

Digital Sky Technologies (DST) also indicated that it plans to offer to purchase at least $100 million of Facebook common stock from existing common stockholders, Facebook said. The move would facilitate liquidity for current and former employees' vested shares in the company. DST will not be represented on the Facebook board.

The companies will release further details to "eligible participants" during the summer, Facebook said in a blog posting.

"A number of firms approached us, but DST stood out because of the global perspective they bring -- backed up by the impressive growth and financial achievements of their Internet investments," Facebook CEO Mark Zuckerberg said in a statement. "We're looking forward to working with the DST team."

In October 2007, Microsoft bought a 1.6 percent stake in Facebook for $240 million. Facebook was valued at the time at $15 billion. Under terms of the deal, Microsoft was named as the exclusive third-party advertising platform partner for Facebook in the U.S. and abroad.

That agreement was an extension of a prior alliance that the companies struck in August 2006, in which they announced a U.S.-only strategic alliance that named Microsoft the exclusive provider of standard banner advertising on Facebook using Microsoft's digital advertising solutions and the Microsoft adCenter platform.

Based in London and Moscow, privately held DST is backed by Russian and Western financial institutions. The company has invested in companies such as Mail.ru, Forticom and vKontakte.

Posted by Michele Masterson at 4:58 PM
Media Kits | Reprints | Privacy Statement | Copyright © 2010 United Business Media LLC | Terms of Service
CRN Logo ChannelWeb Logo CRN Logo CRNTech Logo Everything Channel Events IPED
ADVERTISEMENT




CHANNEL SERVICES >>