Latest Deal Values Facebook at $10B
Russian company pays $200M for 2% of social networking site
By GREG WILSON
Updated 11:50 AM PST, Tue, May 26, 2009
Facebook, the social networking site started by SOME KID, is worth $10 billion, based on the price a Russian company just paid for a chunk of it.
Digital Sky Technologies paid $200 million for just under 2% of the site, which would make the whole enchilada worth $10 billion, according to Bloomberg News. The site was started by Mark Zuckerberg while he was in college at Harvard University just five years ago.
Facebook has also sold stakes to Microsoft and a handful of venture capital funds. The company, which makes money from online advertising, is trying to ride out the recession -- just like the rest of us.
Digital Sky has funded Internet companies in Russia and Eastern Europe, including social networking sites that reach 350 million people.
Zuckerberg, who recently marked his 25th birthday. He was worth an estimated $1.5 billion in 2008 and is the youngest person to appear in the Forbes 400 richest Americans.
But he may have dropped below billionaire status in the last year, and the estimated value of his company dropped from the $15 billion it was worth when Microsoft bought a 1.6% stake for $240 million.
So at least there's that.
First Published: May 26, 2009 10:18 AM PST
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