New investment values Facebook at US$10billion

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New investment values Facebook at US$10billion

Social networking giant Facebook has landed a new investor and set a new mark for its valuation.

The company has finalised a deal with Russian investment firm Digital Sky Technologies (DST).

Under the deal, Digital Sky will pay US$200 million dollars to the company in exchange for a 1.96 per cent stake in the company. The deal puts Facebook's overall valuation at roughly US$10 billion.

"This investment demonstrates Facebook's ongoing success at creating a global network for people to share and connect," said Facebook founder and chief executive Mark Zuckerberg.

"A number of firms approached us, but DST stood out because of the global perspective they bring, backed up by the impressive growth and financial achievements of their internet investments."

Facebook's value has long been an issue of contention. When Microsoft took a stake in the company in 2007, Facebook's valuation was placed at roughly US$15 billion.

While it has been widely accepted that the figure reflected a higher than actual value, there has been much debate over the true worth of Facebook, which Zuckerberg acknowledged has yet to become fully self-sustaining.

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