Today, Facebook secured a $200 million investment from Russian Digital Sky Technologies for a 1.96 percent stake in the company's preferred stock, giving the social network a $10 billion valuation. The company is also offering to buy at least $100 million in Facebook common stock, allowing some employees to liquidate their stake in the company.
Never heard of Digital Sky Technologies? It's invested in a number of Eastern-European Internet properties, which account for over 70 percent of Russian-language page views. It's invested in Mail.ru, Russia's largest web site and its social networks (including Polish site Naszaklasa.pl) are the market leaders in 13 countries.
This investment should help Facebook as it grows revenue, becomes profitable and gets on the road to an IPO. CEO Mark Zuckerberg and COO Sheryl Sandberg have both said that the company does not *need* money. In a conference call after the announcement today Zuckerberg said the money "gives us a cash cushion" and provides "flexibility."