Digital Sky Technology Raises Possibilty of Future IPO

Yuri Milner, founding partner and CEO of Digital Sky Technologies (DST), has recently put forth the possibility of his company offering an IPO within the next three years. Specific dates have not been mentioned since market conditions will play a big role in the decision when the time comes. The company was recently valued at roughly $1 billion when Russia’s Alisher Usmanov purchased a 2% share of DST from Renaissance Partners.

Most DST companies post significant annual profits, making the possible IPO very attractive to a wide range of investors. In addition, DST will combine its own funds with that of shareholders to invest in Facebook, increasing its potential value in the future. With increased value in the company, speculation has already begun about whether a DST IPO would eclipse last year’s $2 billion Yandex IPO.

Digital Sky Technologies
Digital Sky Technologies is a global holding company focused exclusively on Internet related companies. It is the largest Internet investor in Russia and Eastern Europe, as well as one of the largest in the world. DST estimates that nearly 70% of all Russian language page views originate from among their portfolio companies, with a projected potential audience of 300 million viewers. Of the more than 30 companies DST has invested in, Mail.ru is one of the most well known in their portfolio.

Alisher Usmanov
Alisher Usmanov is the founder and majority shareholder of Metalloinvest, a Russian mining and metallurgy company specializing in the manufacture of steel. With a personal fortune estimated at $9.3 billion, Usmanov was touted by Forbes Magazine as the 18th richest man in Russia on their 2007 list. At the time he was also listed as the 91st richest in the world. Mr. Usmanov is major shareholder in London’s Arsenal Football Club and has various other investments scattered around the world.