Digital Sky Purchasing $100 Million of Facebook Common Stock, Gaining 3.5% Ownership

Posted Jul 13, 2009

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.

[via Fortune]