FaceBook reels in the big fish

FaceBook is getting a $200 million investment from a Russian Internet investor that reportedly thinks the social networking company has a value of close to $10 billion. The $200 million investment gives Digital Sky Technologies equals to only a two percent stake in the Palo Alto, California based FaceBook company preferred stock. They also have offered another $100 to $150 million for common stock. It was not long ago if you remember when Microsoft bought in to FaceBook the value was appraised at $15 billion that was 2007, guess the recession has hit everyone. This really makes little sense as FaceBook has grown to over to 200 million users and it was only one quarter of that without a huge world presence. FaceBook of course never substantiated that number and internal audits at the time claimed the worth they believed to have a market value of about $3.7 billion Microsoft only received a 1.6% share of the company for their $240 million. This is big news for FaceBook as pressure to make money has dogged the company since it exploded to over 200 million users worldwide. We have not heard word that FaceBook has accepted the offer or if there are, any strings attached.

Leave a Reply