- Digital Sky Technologies
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Digital Sky Technologies Type Private Industry Internet Founded 2005 Key people Yuri Milner, CEO and Managing Partner;
John Lindfors, Partner;
Alexander Tamas, Partner;
Rahul Mehta, Principal;
Shou Zi Chew, Investment Manager;
Saurabh Gupta, Investment ManagerWebsite dst-global.com Digital Sky Technologies (DST) or Mail.Ru Group is an international investment firm focused solely on the Internet sector. The firm was founded by Yuri Milner and emerged out of Mail.ru Group. Today, DST is fully independent of Mail.ru Group and its investments include Facebook, Zynga and Groupon.[1][2][3][4]
Contents
Investments
The firm became known globally after leading an investment of $200 million in Facebook at a $10 billion valuation in May 2009 [5] and launching a tender offer of $100 million to the employees of Facebook in July 2009.[6] Subsequently the firm continued to buy shares in the company and is now one of the largest institutional shareholders in Facebook.[7] In January 2011, DST and Goldman Sachs co-led a $500 million investment round in Facebook, valuing the company at $50 billion.[8]
In December 2009, DST led the $180 million investment in Zynga which had a primary and a secondary component.[9]
In April 2010 DST led a $135 million investment in Groupon at a rumored $1.35 billion valuation.[10] Subsequently, DST invested again as part of Groupon’s $950 million round in January 2011.[11]
DST’s way of structuring deals, where they buy both preferred stock from the company and common stock from employees, is becoming a new way to invest in startups. In fact, some industry people recognise these deal structures as “DST deals”.[12]
Yuri Milner, in an interview in February 2010, mentioned that DST monitors close to 50 companies globally and that these companies can be investment opportunities. DST plans to invest more than $1 billion in social web companies around the world over the next five years.[13]
Relationship with Mail.ru Group
Yuri Milner is the founder of both Mail.ru Group and DST. He currently serves as the non-executive Chairman of Mail.ru Group and as the CEO of DST.[14][15] Mail.ru Group was originally called Digital Sky Technologies and started making international investments from its balance sheet. As part of Mail.ru Group’s IPO the company renamed itself to its current name.[16] DST was formed as a separate entity, initially called DST Global to co-invest with Mail.ru Group. Post Mail.ru Group’s IPO, DST is the sole vehicle for further international investments. The company is now fully independent of Mail.ru Group.[17]
Relationship with Goldman Sachs
DST has strong ties to Goldman Sachs.[18] The majority of DST’s partners and employees have previously worked at Goldman Sachs. Alexander Tamas joined DST from Goldman Sachs in 2008 and John Lindfors, a previous partner at Goldman Sachs, joined DST in 2010.[19] Other ex-Goldman Sachs employees include Rahul Mehta [20] and Shou Zi Chew.[21] In January 2011, DST has orchestrated an investment into Facebook and brought Goldman Sachs into the deal.[22]
References
- ^ Mail.ru Group prospectus November 2010
- ^ Facebook press release May 2009
- ^ Zynga press release December 2009
- ^ Businesswire article on DST Groupon investment April 2010
- ^ Facebook press release May 2009
- ^ Techcrunch article July 2009
- ^ Business Insider article
- ^ Facebook Press Release Jan 2011
- ^ Zynga press release December 2009
- ^ Businesswire article on DST Groupon investment April 2010
- ^ Businesswire article on Groupon investment round January 2011
- ^ Techcrunch article January 2010
- ^ Businessweek article February 2010
- ^ Mail.ru Group prospectus November 2010
- ^ AllThingsD article January 2011
- ^ Mail.ru Group prospectus November 2010 page F-100
- ^ Mail.ru Group prospectus November 2010
- ^ Forbes blog article January 2011
- ^ Techcrunch article June 2010
- ^ Business Insider article January 2011
- ^ LinkedIn Profile
- ^ Businessweek article January 2011
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