Russia’s largest social network delays IPO following Facebook jitters

email article email article print article print article tip @techmeme

The circus around Facebook’s juddery IPO has rolled into Moscow. The Wall Street Journal is reporting that Russia’s largest social network Vkontakte has postponed its IPO as a result of Facebook’s less-than-brilliant market debut.

The social network’s founder and CEO Pavel Durov reportedly tweeted “The Facebook IPO damaged many private investors’ trust in social networks, and the [VKontakte] IPO has been postponed indefinitely”.

Durov is thought to own about 12% of the 119-million strong social network. Interestingly, one of the company’s larger investors Mail.ru (formerly Digital Sky Technologies) also has a five percent stake in Facebook. That adds the possibility of a “once bitten, twice shy” element to the decision.

The investment company’s own 2010 IPO saw it raise over US$1-billion, while its 56.3-million Facebook shares worth US$2.14-billion. Given the spectacular drop in Facebook’s share price, it’s unlikely that it would be willing to risk having another go on the stock market just yet.

That said, Russian newspaper Moscow Times says the decision was largely driven by Purov with the backing of Mail.ru.

email article email article print article print article

Related articles

Topics for this article

[ advertising enquiries ]

Share
  • BURN MEDIA TV

    WATCH THE LATEST EPISODE NOW
    Latest Episode
    Review of Gmail Inbox app

MORE HEADLINES

news

VIEW MORE

interviews

VIEW MORE

future trends

VIEW MORE

entrepreneurship

VIEW MORE

social media

VIEW MORE

facebook

VIEW MORE

twitter

VIEW MORE

google

VIEW MORE

advertising & marketing

VIEW MORE

online media

VIEW MORE

design

VIEW MORE

mobile

VIEW MORE

More in News

New Google report lets online publishers know what's cracking in ads

Read More »