Facebook Gets $200 Million In Funding

Facebook has landed a $200 million investment from Digital Sky Technologies (DST), an Internet investment group with significant stakes in Eastern European and Russian Internet businesses.


The investment in Facebook is in exchange for preferred stock, representing a 1.96 percent equity stake at a $10 billion valuation.


“This investment demonstrates Facebook’s ongoing success at creating a global network for people to share and connect,” said Facebook CEO Mark Zuckerberg.


“We’ve worked hard to bring more than 200 million people – 70 percent outside of the U.S. – onto Facebook to share with friends, family and co-workers. 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. We’re looking forward to working with the DST team.”


In addition, DST has indicated that it is planning to offer to purchase at least $100 million of Facebook common stock from existing common stockholders that would facilitate liquidity for current and former employees’ vested shares in the company.


The details of the plan are expected to be announced to eligible participants during the summer.


“Our investment experience in other regions reveals the tremendous value social networking companies create as they redefine how people communicate and interact,” said Yuri Milner, chief executive of DST.