The Week: City news - Facebook eyes investment

The Russian investment group Digital Sky Technologies has made a $200 million investment in Facebook, a deal which values the social networking site at $10 billion.

The deal, for a 1.96 per cent stake in Facebook, is believed to have been tabled by the Russian entrepreneur Yuri Milner, who is seeking a seat on the board in exchange. Facebook has not taken significant funding since a deal with Microsoft in 2007 that saw it sell a 1.6 per cent stake.