Facebook, the internationally known social-networking web site, has announced a deal bringing Digital Sky Technologies into the fold as a Facebook investor. The deal is structured as a purchase of USD 200 million in preferred stock, giving DST nearly a 2% stake in the company. Future plans, if realized, will see DST investing an additional USD 100 million for Facebook common stock. The investment deal is similar to the one Facebook struck with Microsoft in 2007. That deal was a USD 240 million purchase giving the Redmond based software giant a stake in Facebook equal to about 1.6%.
In keeping with its normal practices, Digital Sky Technolgies will not be given any representation on the Facebook Board of Directors.
Digital Sky Technologies
Digital Sky Technologies Limited is a Russian investment house with assets between EUR 1 and 2 billion. Beside others, the company is the minority stakeholder in Russian social networking sites Odnaklassniki.ru and Vkontakte, as well as recruitment site Headhunter.
May 27, 2009
Investment, Private Equity News, USA