Russian Social Network Cancels IPO after Facebook Woes
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.
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 Mail.ru 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.