Facebook Receives $200 Million From Russian Investment Group

Facebook announced today that it had received $200 million from Digital Sky Technologies, a Russian-based investment group, in exchange for a 2% stake in the most popular online social networking site. The 1.96% equity stake places a valuation of Facebook at $10 billion.

In addition to the $200 million investment, Digital Sky Technologies (DST) also says they plan on purchasing at least $100 million of Facebook common stock from existing stockholders. The details around this plan are to be announced during the summer.

"Consistent with Facebooks practice with other recent investors, DST will not be represented on the Facebook board or hold special observer rights." Facebook said in a statement.

"This investment demonstrates Facebook's ongoing success at creating a global network for people to share and connect," said Facebook CEO Mark Zuckerberg. "We've worked hard to bring more than 200 million people 70 percent outside of the U.S. onto Facebook to share with friends, family and co-workers. 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. Were looking forward to working with the DST team."

If Facebook's revenue continues to grow 70% year-over-year as it has done in the past, the company is expected to sustain positive cash-flow in 2010 without any additional capital.