Facebook today announced that Digital Sky Technologies (DST), made a $200 million investment in Facebook in exchange for preferred stock, representing a 1.96 percent equity stake at a $10 billion valuation.
In addition, DST has indicated that it is planning to offer to purchase at least $100 million of Facebook common stock from existing common stockholders that would facilitate liquidity for current and former employees’ vested shares in the company.
DST will not be represented on the Facebook board or hold special observer rights.
“This investment demonstrates Facebook’s ongoing success at creating a global network for people to share and connect,” said Facebook CEO Mark Zuckerberg. “We’ve worked hard to bring more than 200 million people – 70 percent outside of the U.S. – onto Facebook to share with friends, family and co-workers. A number of firms approached us, but DST stood out because of the global perspective they bring – backed up by the impressive growth and financial achievements of their internet investments. We’re looking forward to working with the DST team.”
“Our investment experience in other regions reveals the tremendous value social networking companies create as they redefine how people communicate and interact,” said Yuri Milner, chief executive of DST. “By every important metric – user growth and engagement, technological innovation and financial performance – Facebook is on a similar trajectory, though on a much more global scale. We’re delighted to invest in Facebook, Mark and his management team as they make the world more open and connected.”
Based in London and Moscow, DST is a well-respected investor in a number of successful internet companies, holding significant interests in Russia and Eastern Europe, such as Mail.ru, Forticom and vKontakte. DST’s main assets account for over 70 percent of all page views in the Russian-speaking internet and its social networks are the market leaders in more than 13 countries, addressing a combined population of more than 350 million.
DST is run by its three partners who have complementary backgrounds in operations, investments and finance: Yuri Milner, previously CEO of Mail.ru, the #1 Russian language website; Gregory Finger, previously head of the Moscow office of NCH, a multi-billion dollar hedge fund; and Alexander Tamas, previously co-head of internet and software coverage in EMEA for the Investment Banking Division of Goldman Sachs. With its advanced understanding of opportunities in technology and social media, DST is a good fit for Facebook and an insightful partner that can help unlock additional growth opportunities.
Facebook is holding a teleconference for the media today at 9:45 a.m. Pacific Daylight Time. From the U.S., participants should dial (877) 809-9539. Participants outside the U.S. should dial (706) 679-8713. Please reference conference identification number 11871648 to join the call. A replay of the teleconference will be available for one week. To access the replay, U.S. participants should dial (800) 642-1687 and participants outside the U.S. should dial (706) 645-9291. Please reference conference identification number 11871648.
“…but DST stood out because of the global perspective they bring – backed up by the impressive growth and financial achievements of their internet investments.”
Right. And the fact that DST was willing to cough up 200 million for a ludicrous less than 2% of the company and no board representation had absolutely nothing to do with their “selection.”
Must be something hidden behind, I do not believe sane people would caugh up 200 mil for this
All I can think of is “Chandler Bing”.
myspace sold for $580 million long time ago…and now your telling me that facebook is worth $10 billion…wow!!!
LOL @ MySpace for $580 million, people don’t even use MySpace any more, it’s just not cool, these fads will come and go.
Has Read several times, but don’t care nothing have not understood.