Offer puts value of at least $6.5B on Facebook

Jul 13, 2009 By BARBARA ORTUTAY , AP Technology Writer
Facebook logo

(AP) -- How much is Facebook worth? A Russian investment firm appears to put it at $6.5 billion to $10 billion.

The investment group, Digital Sky Technologies, said Monday it will buy up to $100 million worth of Facebook shares from current and former employees. At the price the firm would pay, $14.77 per share, the Internet networking company would be worth about $6.5 billion.

In May, Digital Sky bought $200 million worth of preferred shares in Facebook. That valued the company at roughly $10 billion, but those shares are worth more because they come with more rights. Facebook's open-market price would likely fall between the values implied by the preferred and common shares.

A true test would come if Facebook pursued an , which founder and CEO has said he is no hurry to do.

At the very least, it seems Facebook is worth less than $15 billion, which was implied in 2007 when Microsoft bought a 1.6 percent stake in the company's preferred shares for $240 million.

But based on Digital Sky's investment it is worth more than the $3.7 billion value that Facebook placed on itself after the Microsoft deal, according to details revealed last year in a legal settlement.

Based in London and Moscow, Digital Sky also holds a stake in vKontakte, a Russian social network that is much more popular in that country than Facebook. If its $100 million tender offer is fully paid out, the company will end up with a 3.5 percent stake in Facebook.

The offer is not open to Zuckerberg and other executives.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Facebook collecting Nepal quake aid donations

Related Stories

Facebook's $200M investment values co. at $10B

May 26, 2009

(AP) -- Facebook is getting a $200 million investment from a Russian Internet investor that values the social networking company at $10 billion even though it has yet to turn a profit.

Social networking aggregator sues Facebook

Jul 10, 2009

(AP) -- In a counter-punch to the world's biggest online hangout, a small Web company called Power.com has sued Facebook, saying it doesn't follow its own policy of giving users control over their content.

Recommended for you

Facebook rolls out video calls on Messenger

7 hours ago

Facebook on Monday began rolling out video calling on its Messenger mobile application, enabling face-to-face conversations among users of the app around the world.

Tinder, Vice honored in online Webby awards

10 hours ago

The online dating app Tinder was this year's "breakout" Internet service while bad-boy news website Vice Media got multiple honors in the "Webby" awards announced Monday.

'Map spam' puts Google in awkward place

Apr 24, 2015

Google was re-evaluating its user-edited online map system Friday after the latest embarrassing incident—an image of an Android mascot urinating on an Apple logo.

Google search mobile switch a revolution for some

Apr 24, 2015

Google's latest Internet revolution this week saw the web giant modify its search algorithm to favour mobile-friendly sites, in a bid to upstage Apple that US media branded a "mobilegeddon".

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.