Russia's DST raising stake in Facebook at $6.5 billion valuation

NOTE: GrowthBeat -- VentureBeat's provocative new marketing-tech event -- is a week away! We've gathered the best and brightest to explore the data, apps, and science of successful marketing. Get the full scoop here, and grab your tickets while they last.

Russia’s Digital Sky Technologies is boosting its stake in Facebook by buying from existing shareholders, Reuters is reporting.

Offering the same $14.77 a share it put forward earlier in July, the Russian investment firm is turning to shareholders who aren’t Facebook employees to raise its holdings by up to $100 million. DST held a 3.5 percent stake in the company after a $200 million direct investment plus $100 million it spent purchasing current and ex-employee shares over the summer.

The move comes on the heels of Facebook’s announcement that it’s “free cash flow positive” or making money after setting aside capital to maintain and grow its technology infrastructure. SharesPost, a secondary market for more illiquid holdings in private equity or venture-backed companies, lists its highest offer at $14.42 a share.

DST is going after employee shares, which are valued far less than the preferred stock that other investors and DST already owns through its earlier round. The investors’ preferred shares include special privileges, typically including the right to re-invest, the right to sell their stock first, and possibly a board seat or two. Common stock is stock without privileges.

Facebook declined to comment.


We're studying digital marketing compensation: how much companies pay CMOs, CDOs, VPs of marketing, and more, with ChiefDigitalOfficer. Help us out by filling out the survey, and we'll share the results with you.

Trackbacks

  1. [...] In 2008, our reporters determined that Facebook was valued internally at around $4 billion. In the fall of 2009, Russian investment firm Digital Sky Technologies bought shares at a $6.5 billion valuation. [...]