In July, Digital Sky Technologies (DST) bought $100 million worth of Facebook stock and gained a 3.5% ownership in the company. About 2 months later, Digital Sky Technologies invested in a Russian replica of Facebook. Now Digital Sky Technologies is showing additional interest in Facebook by buying up additional shares in the top social network. DST is buying the shares directly from shareholders.
“Their appetite with me is: ‘whatever you have, we’ll take it,’” stated a source with Reuters that is a Facebook shareholder. This shareholder agreed to sell his stock to Digital Sky. DST is offering about $14.77 per share in Facebook which is the same amount that they bought the stock for back in July. Based on this price, Facebook is valuated at $6.5 billion. Facebook has about 300 million users serving about 300,000 images per second.
Facebook invested $200 million in preferred shares back in May. Between this investment and the $100 million purchase of stock back in July, this gave the company the 3.5% ownership. Facebook revenues will surpass $500 million this year.
Digital Sky Technologies is an Internet holding company based in Russia. Digital Sky is a major investor in Facebook and they have just invested in a company that is a Russian replica of the social network Vkontakte.ru. Vkontakte.ru is getting ready to launch internationally and just recently bought the domain name vk.com. Vkontakte.ru will be available in 12 different languages as of this October.
Digital Sky Technologies owns 1.96% of Facebook after they made a $200 million investment in the social network. Digital Sky also offered to buy up to $100 million in common stock from former and current Facebook employees.
Vkontakte.ru has about 42 million registered users and receives about 14 million unique visitors per month.
Back in late May, Russian investment firm Digital Sky Technologies bought about $200 million worth of Facebook preferred stock. The company has followed up today with another investment. Digital Sky is now purchasing $100 million of common stock from current and former Facebook employees.
This will give employees a chance to cash out from all of their work and may motivate some to stay. On the other hand, some may just want to take their earnings and run. Digital Sky will be paying about $14.77 per share, valuating Facebook at $6.5 billion. The $200 million preferred share purhase gave Digital Sky 2% ownership in Facebook, giving Facebook a valuation of $10 billion at the time.
The combined $300 million investment gives Digital Sky a 3.5% total ownership in Facebook. When Microsoft Corporation invested $240 million in Facebook in October 2007, they received about 1.6% ownership at a $15 billion valuation and an exclusive ad partnership until 2011.
Digital Sky Technologies (DST) is a Russian investment company that has just bought $200 million worth of Facebook stock based on a $10 billion valuation. Last week Digital Sky also made an offer to buy $100 million-$150 million worth of common stock at $6.5 billion valuation.
The common stock offer would be used to buy stock from employees as long as they are willing to cash out. Digital Sky is owned by Russian businessman Yuri Milner. DST also has ownership in major online mailing system Mail.ru.
