Posted by: Collabo
Category: Facebook, Investments, Social Networking
Tags: Digital Sky Technologies, Facebook valuation, Microsoft
Facebook Valuation of $10 Billion Seals the $200 Million Dollar Deal
Yesterday Facebook accepted a $200 million dollar offer from Russian Internet investment group Digital Sky Technologies. The deal values Facebook at $10 billion and gives Digital Sky about a 2% preferred stock stake in the company. Only a year and a half ago a funding round with Microsoft valued Facebook at $15 billion, which may have been the “absolute peak of the market,” according to Facebook CEO Mark Zuckerberg. Depressed economic conditions today are sure to play a role in the declining valuation.
This investment could bring additional value to the Facebook brand with the extensive knowledge that Digital Sky has of the Russian and Eastern European markets.
Early last week we reported that Facebook turned down a $200 million dollar offer with a valuation of $8 billion. The terms of that deal included a seat on the Facebook board of directors. Our sources did not state where the offer had come from, but this Tuesday’s acceptance by Facebook could very well be that same deal renegotiated.
