Facebook has been valued at $10bn by Russian internet
investment groupDigital
Sky Technologies(DST), which has bought a 1.96% stake
in the social networking firm for $200m.
The valuation is down by a third since
Microsoft invested $240m 18 months ago at Facebook's peak, but
in the same time Google's shares have fallen 50% below their
peak.
Facebook insists is it is not in need of cash and that DST
initiated the deal after an introduction by one of its backers,
Goldman Sachs, according to the
Financial Times.
Mark Zuckerberg, Facebook chief executive, said yesterday that
Facebook had been profitable for five quarters and was expecting
revenue growth of 70% this year.
Analysts, however, have noted that Facebook has accepted the
highest valuation on offer, prompting speculation that the company
is keen to have a buffer against the cost of expansion.
As long as Facebook grows, it will need additional capital to
build capacity for additional activity on the site, analysts
said.
The partnering with DST is also thought to be strategic for
Facebook's growth in Russia because of DST's government connections
and experience in making money through social networking sites.
Along with accelerated expansion in Russia, Facebook's
partnership with DST could soon see the introduction of alternative
sources of revenue to boost its income from advertising.
Picture from Rex Features.