Russian Social Network Cancels IPO after Facebook Woes

via WSJ:

Russia’s most popular social network Vkontakte postponed the initial public offering of its shares indefinitely as a result of Facebook Inc.’s (FB) unimpressive market debut, the network’s founder and Chief Executive Pavel Durov said.

“The Facebook IPO damaged many private investors’ trust in social networks, and the [VKontakte] IPO has been postponed indefinitely,” Mr. Durov said on his Twitter account Tuesday.

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VKontakte is Russia’s most popular social network with about 119 million users. It was considering an IPO in 2012.

Mr. Durov owns 12% in the company, while Group, controlled by Russia’s richest man Alisher Usmanov, owns 39.99%. The latter company said Tuesday it had given Mr. Durov the right to vote with its shares, effectively giving him control of the company.

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