Facebook Receives Investment From Digital Sky Technologies
Passive Investment Includes Stake in Preferred Stock, Common Stock and Support for Facebook's Continued Global Growth
PALO ALTO, Calif/PRNewswire/ -- Facebook today announced
that Digital Sky Technologies (DST), one of the leading internet
investment groups globally with significant stakes in Eastern European
and Russian internet businesses, 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. Consistent with Facebook's practice with other recent
investors, 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.
About Facebook
Founded in February 2004, Facebook's mission is to give people the
power to share and make the world more open and connected. Anyone can
sign up for Facebook and interact with the people they know in a
trusted environment. Facebook is a privately held company and is
headquartered in Palo Alto, Calif.
About Digital Sky Technologies
DST was founded in 2005 and is the largest internet investor in the
Russian-speaking and Eastern European markets and one of the leading
investment groups globally to exclusively focus on internet and
internet-related companies. DST is a privately held holding company
backed by leading Russian and Western financial institutions. DST has
offices in Moscow and London. For more information please visit http://www.dst-global.com/.
Facebook(R) is a registered trademark of Facebook Inc. Other names may be trademarks of their respective owners.
Source: Facebook
CONTACT: United States, Larry Yu of Facebook, +1-650-543-7405; or Mike
Buckley or Ashley Zandy, both of Brunswick Group, +1-415-293-8461, for
Facebook; or Europe, Tim Burt or Ekaterina Alferova, both of Brunswick Group,
+44 20 7404 5959, for Facebook; or Russia, Leonid Solovyev, +7 495 795 06 23,
or Europe, James Melville-Ross or Matt Dixon, +44 20 7831 3113, or United
States, Sage Baker, +1-415-293-4430, all of Financial Dynamics, for Digital
Sky Technologies
Web Site: www.facebook.com
http://www.dst-global.com/
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