Digital Sky Technologies

David Gelles

Results from Facebook pages will soon begin appearing in Yandex, the leading search engine in Russia. Yandex.ru will also get a Facebook widget on its homepage.

It’s another example of search engines gaining access to the growing trove of information on Facebook’s social graph, and making search a bit more social. Just two weeks ago, Facebook deepened its ties with Microsoft’s search engine, Bing.

But the partnership also puts a wrinkle in Facebook’s relationship with investor Mail.ru (formerly known as Digital Sky Technologies). Mail.ru and Yandex are rivals, competing aggressively for eyeballs in Russia’s booming internet market. 

David Gelles

It was only in March that LivingSocial, the number two group buying site, took $25m in Series B funding. That, apparently, only tided the fast-growing company over for six weeks. Today the company is back with another $14m in funding, largely from the same investors.

That may seem like a lot of cash to take on in a few short months, and it is. But it pales in comparison to the $135m that Groupon, the leader of the pack, took from Digital Sky Technologies and friends a few weeks ago. 

  • Facebook accepted a $200m investment from Digital Sky Technologies, a private Russian internet investment group, valuing the fast-growing social network’s preferred stock at $10bn. The unlikely union gives Facebook an additional cash cushion, but the $10bn valuation is a come down. Just a year and a half ago, Microsoft invested $240m on similar terms, but valued Facebook’s preferred stock at $15bn.
  • Psystar, the Florida company that was making unauthorised clones of Apple computers, filed for Chapter 11 bankruptcy protection. The move puts at least a temporary end to Apple’s lawsuit against the company, and could indicate that Psystar’s backers have pulled out, anticipating a victory by Apple in court.