Russian Facebook clone VKontakte is reportedly saying “nyet” to an initial public offering for now, scared off by the issues Facebook encountered with its IPO earlier this month.
Reuters reported that VKontakte Chief Executive Officer Pavel Durov announced Tuesday that his company’s planned IPO was postponed indefinitely, tweeting:
The IPO of FB destroyed the faith of many private investors in social networks.
According to Reuters, Mail.Ru Group, which holds a 39.9 percent stake in VKontakte, had backed Durov’s plan to proceed with the IPO and agreed to give him control over its voting rights.
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