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May 26, 2009
Passive Investment Includes Stake in Preferred Stock, Common Stock and
Support for Facebook's Continued Global Growth
PALO ALTO, Calif., May 26 /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.
Facebook(R) is a registered trademark of Facebook Inc. Other names may be
trademarks of their respective owners.
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