Russian Investment Company Digital Sky Technologies plans further investment later in the summer, as it looks to augment its market lead in social networking websites.

Russian investment group Digital Sky Technologies (DST) has bought a $200 million (£126m) stake in Facebook, giving it a larger stake in the social networking site than Microsoft, which bought a 1.6% stake in 2007.

The stake amounts to a 1.96% equity share of the site and gives Facebook a valuation of $10 billion, however, consistent with other investors’ rights, the stake does not give DST representation on the Facebook board or allows them special observer rights. 

“This investment demonstrates Facebook’s ongoing success at creating a global network for people to share and connect,” commented Facebook’s CEO, Mark Zuckerberg. “A number of firms approached us, but DST stood out because of the global perspective they bring [....]. We’re looking forward to working with the DST team.”

Facebook has more than 200 million active users worldwide and since its inception in 2004, has become one of the largest social networking websites in the world.

DST has a history of impressive internet investment, with an eye for a savvy purchase. Within its portfolio it has stakes in Mail.ru, and social networking websites Forticom and vKontakte, and as a consequence, its assets account for over 70% of page views on Russian language websites. DST CEO, Yuri Milner said: “We’re delighted to invest in Facebook, Mark and his management team as they make the world more open and connected.”

In addition, DST has indicated that it is intending to offer to purchase at least $100m of Facebook common stock from existing common stock shareholders that would facilitate liquidity for current and former employees’ vested shares in the company. The plan is likely to be announced during the summer.