Facebook Takes That $200 Million Investment From The Russians At A $10 Billion Valuation.

Facebook Takes That $200 Million Investment From The Russians At A $10 Billion Valuation.

[url=http://www.techcrunch.com/2009/05/26/facebook-takes-that-200-million-investment-from-the-russians-at-a-10-billion-valuation/]www.techcrunch.com[/ url]

Facebook is taking that rumored $200 million investment from Digital Sky Technologies, a Russian investment group. DST will take a 1.96 percent stake in the company, giving Facebook a $10 billion valuation. Facebook ultimately did not have to give up a board seat to DST in return for the cash. But DST is getting preferred shares for it’s $200 million.

(visit the link for the full news article)

I have to say I think Facebook is used by the government to track the people on it. Now it makes you wonder why a Russian company is suddenly interested in it?

The article says:

Despite recent public statements from COO Sheryl Sandberg saying that Facebook does not need the money, it can certainly use the cash to fund its growing operations, including bandwidth, storage, and engineering costs.

So, why take the money if they dont need it and allow a foreign investor 1.96% of your company?

Is this just a ruse to push people away from thinking it's a government data mining site?

[url=http://www.techcrunch.com/2009/05/26/facebook-takes-that-200-million-investment-from-the-russians-at-a-10-billion-valuation/]www.techcrunch.com[/ url]
(visit the link for the full news article)

Edit: Tried to fix the link but nothing seems to work, help with it would be appreciated *looks at mods* love you long time?

[edit on 5/26/2009 by Tentickles]

Companies always need money, so i don't really understand the quote.

You're right about Russia sniffing on data mining. Much like Google sequesting details to China for bloggers.

I think Twitter will blast Facebook/MySpace to oblivion once they expand their biz model.

$200M for 1.96%, what a bloody sweet deal