Facebook today announced that Digital Sky
Technologies (DST), an internet investment group,
has 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. The details of the plan are expected to be
announced to eligible participants during the
summer. 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 has made 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