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Alaska (/əˈlæskə/, Russian: Аляска Alyaska) is the largest state of the United States of America by area; it is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait. As of 2007, the population was 683,478 with approximately 50% residing along the Anchorage metropolitan areas.

The area that became Alaska was purchased from the Russian Empire after Western Union discontinued construction of its first electric telegraph line which ran from California, up the coast of North America, across the Bering Strait, continuing to Moscow and into the European telegraph network. Despite $3 million in U.S. investment for the Russian-American telegraph expedition, work ceased upon the completion of the competing Transatlantic telegraph cable. The U.S. realized the potential of continuing the line to Moscow and sent Secretary of State William H. Seward to negotiate with the Russian Ambassador to fund the remaining phases of the telegraph line. Russia didn't see the potential in funding so Alaska was offered in exchange for the value of the Russian-American telegraph. The Russians feared that if they did not sell Russian North America, it would be taken from them by the westward expansion of the United States and Canada. They tried to play one potential purchaser off against the other to start a bidding war, but this was largely unsuccessful.

The U.S. Senate approved the purchase of Alaska from the Russian Empire on March 30, 1867, for $7.2 million at 2 cents per acre, about 5 cents per hectare. When adjusted for inflation, the total sum paid equates to approximately $111 million in today's dollars.The land went through several administrative changes before becoming an organized territory on May 11, 1912 and the 49th state of the U.S. on January 3, 1959. The name "Alaska" was already introduced in the Russian colonial time, when it was only used for the peninsula and is derived from the Aleut alaxsxaq, meaning "the mainland", or more literally, "the object towards which the action of the sea is directed." It is also known as Alyeska, the "great land", an Aleut word derived from the same root.

Source: CIA Factbook, Wikipedia

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