Facebook has raised $500m of an anticipated $2bn funding from Goldman Sachs and other investors, valuing the social networking firm at $50bn.
This gives Facebook founder Mark Zuckerberg a paper fortune of $12bn and puts the company's worth at more than Time Warner or Yahoo and almost twice as much as Google at the time of its 2004 initial public offering, according to the Financial Times.
The valuation is also almost double the amount indicated by private sales of Facebook stock on secondary markets just five months ago.
According to reports, Goldman Sachs is to provide $375m and plans to raise $1.5bn from outside investors. Russia's Digital Sky Technologies is to provide $125m.
Digital Sky Technologies (DST) increased its stake to 3.5% after buying a 1.54% stake in Facebook for $200m in 2009. DST is understood to have increased its holding to about 10% by buying shares from Facebook employees ahead of its latest investment.
Some analysts believe the partnership is strategic for Facebook's growth in Russia because of DST's government connections and experience in making money through social networking sites.