Do you think that the social media platform Facebook is worth $10 billion?
The Russian company Digital Sky Technologies sure thinks so, as it has just acquired 2% of preferred shares at $200 million. Facebook CEO Mark Zuckerman said DST was chosen out a large group of suitors because of its good reputation: “DST stood out because of the global perspective they bring – backed up by the impressive growth and financial achievements of their Internet investments.“
Riiiight… There were lots of buyers out there who wanted to pay $200 million for 2%. One analyst told the FT that “I’m sure there are investors closer to home that would be happy to invest in Facebook, but not at that valuation.“
Add this to Alexander Mamut’s purchase of LiveJournal in 2007, and we have Russia emerging as one of the leading social media investment countries. Of course nobody has any clue how much money either Facebook or LiveJournal makes (they don’t disclose their profits), but it is interesting that Zuckerman and company are looking for liquidity if they are sitting atop such a valuable property.
Now I wonder if President Dmitry Medvedev will expand his video blogging and LiveJournal profile on over to Facebook. I’m sure someone has already beat me to creating a group inviting him over.