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Inside money, markets, and Big Tech

This article was published on May 23, 2009

Russian group eyes $350 million Facebook investment

Russian group eyes $350 million Facebook investment
Zee
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Zee

Former CEO of The Next Web. A fan of startups, entrepreneurship, getting things done faster, penning the occasional blog post, taking photos Former CEO of The Next Web. A fan of startups, entrepreneurship, getting things done faster, penning the occasional blog post, taking photos, designing, listening to good music and making lurrrve.

home_facebookA Russian Internet group, Digital Sky Technologies, have reportedly offered $200 million in investment to Facebook. The deal would value the worlds largest social networking site at approximately $10 billion.

Although full details of the investment have not been revealed, Digital Sky have put in an offer of $200 million in the company’s preferred stock, and an additional $100 million to $150 million investment in the company’s common stock.

Mark Zuckerberg, Facebook’s CEO, has been quoted as saying

“If there’s an investment to be done on very good terms, we will consider it if for no other reason than to have more buffer if we want to do something in the future.”

Digital Sky Technologies are established internet players, with a majority stake in Russian email service Mail.ru.

Techcrunch reported earlier this week that Facebook rejected a $200 million dollar investment at $8 billion valuation, but Facebook were intent on keeping the potential investor’s name quiet.

Venturebeat also reported that Facebook was wrapping up $150 million in financing as it seeks to buy back stock from hundreds of its employees as a way for them to cash out on some of their stock options. This is mainly due to reports that Zuckerberg & Co. are adamant Facebook is still years away from an IPO or sale.

It is not yet clear if the social networking firm has accepted the new offer from Digital Sky Technologies.

**Update**

DST’s three partners Yuri MilnerGregory Finger and Alexander Tamas are reportedly seeking a board seat as part of the proposed $200 million to $350 million investment.