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Facebook gets $200 million from European firm

Social networking investment group Digital Sky Technologies puts $200 million into Facebook in exchange for a nearly 2 percent stake, but no seat on the board.

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Elinor Mills Former Staff Writer
Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service and the Associated Press.
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Elinor Mills

Facebook announced on Tuesday a $200 million investment from Digital Sky Technologies (DST), whose social networks are market leaders in Europe.

Presuming Facebook is valued at $10 billion, DST's $200 million comes out to about a 1.96 percent stake, the companies said in a statement. DST would not have a seat on the board or hold special observer rights, the companies said.

DST also plans to offer to purchase at least $100 million of Facebook common stock from existing stockholders whose shares have vested. The details of the plan will be announced during the summer.

"This investment demonstrates Facebook's ongoing success at creating a global network for people to share and connect," Facebook Chief Executive Mark Zuckerberg said in the statement. "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."

More than 200 million people, of which about 70 percent are outside the U.S., use the popular social-networking service, according to Facebook.

DST, based in London and Moscow, has investments in Mail.ru, Forticom, and vKontakte.