Feeds

Facebook value plummets $5bn

The Russians will save us... bitch

Remote control for virtualized desktops

Facebook has sold 1.96 per cent of itself to a Russian technology investment firm for $200m.

That puts Facebook's ostensible value at $10bn, a $5bn drop from the price tag Microsoft put on the company in October 2007.

On Tuesday, Facebook announced that Digital Sky Technologies (DST) - which owns Russia's largest website, Mail.ru - made a $200m investment in its social networking dream in exchange for preferred stock. This is the company's first major funding since Microsoft's moment of Onanism.

According to a recent analysis by Data Center Knowledge, Facebook is spending somewhere between $20m and $25m a year on data center space alone. And as of the beginning of November, unnamed sources said the company was spending "well over" a million a month on electricity and "likely" another $500,000 for bandwidth, as shameless social networkers post billions of photos and other solipsistic pixels.

Meanwhile, it's unclear how much revenue the company is pulling in via advertising. According to The New York Times, chief executive Mark Zuckerberg says that Facebook’s revenue is growing 70 per cent year-over-year, and he's confident the company will be cash-flow positive in 2010. But its costs are surely growing at a rapid rate as well. The site received 307 million visitors in April, three times the number it received a year ago.

Zuckerberg said that DST's investment will "serve as a cash buffer to support our continued growth, allowing us to scale".

Digital Sky also plans to buy at least $100m of Facebook common stock from existing stockholders to provide liquidity for current and former employees with vested shares in the company.

Microsoft's $240m payout for a 1.6 per cent share of Facebook came before the worldwide economic meltdown, and at the time, Redmond was desperate to fight off an investment from arch-rival Google. As part of the deal, Microsoft became the exclusive third-party advertising platform partner for Facebook and began selling ads for Facebook both in the US and abroad. ®

Intelligent flash storage arrays

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.