Digital Sky Technologies
Encyclopedia
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
.
at a $10 billion valuation in May 2009 and launching a tender offer
of $100 million to the employees of Facebook in July 2009. Subsequently the firm continued to buy shares in the company and is now one of the largest institutional shareholders in Facebook. In January 2011, DST and Goldman Sachs
co-led a $500 million investment round in Facebook
, valuing the company at $50 billion.
In December 2009, DST led the $180 million investment in Zynga
which had a primary and a secondary component.
In April 2010 DST led a $135 million investment in Groupon
at a rumored $1.35 billion valuation. Subsequently, DST invested again as part of Groupon
’s $950 million round in January 2011.
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”.
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.
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
sector. The firm was founded by Yuri Milner
Yuri Milner
Yuri Borisovich Milner is a Russian entrepreneur and venture capitalist. He founded investment firms Digital Sky Technologies , now called Mail.ru Group and DST Global...
and emerged out of Mail.ru
Mail.ru
Mail.ru is the largest free e-mail service of the Runet. The business was originally owned by Port.ru, a company founded in 1998 by Eugene Goland, Michael Zaitsev and Alexey Krivenkov as spin-off from DataArt. It received an initial investment of USD 1 million from the well-known investor James...
Group. Today, DST is fully independent of Mail.ru
Mail.ru
Mail.ru is the largest free e-mail service of the Runet. The business was originally owned by Port.ru, a company founded in 1998 by Eugene Goland, Michael Zaitsev and Alexey Krivenkov as spin-off from DataArt. It received an initial investment of USD 1 million from the well-known investor James...
Group and its investments include Facebook
Facebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...
, Zynga
Zynga
Zynga is a social network game developer located in San Francisco, United States. The company develops browser-based games that work both stand-alone and as application widgets on social networking websites such as Facebook and MySpace....
and Groupon
Groupon
Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto...
.
Investments
The firm became known globally after leading an investment of $200 million in FacebookFacebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...
at a $10 billion valuation in May 2009 and launching a tender offer
Tender offer
Tender offer is a corporate finance term denoting a type of takeover bid. The tender offer is a public, open offer or invitation by a prospective acquirer to all stockholders of a publicly traded corporation to tender their stock for sale at a specified price during a specified time, subject to...
of $100 million to the employees of Facebook in July 2009. Subsequently the firm continued to buy shares in the company and is now one of the largest institutional shareholders in Facebook. In January 2011, DST and Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
co-led a $500 million investment round in Facebook
Facebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...
, valuing the company at $50 billion.
In December 2009, DST led the $180 million investment in Zynga
Zynga
Zynga is a social network game developer located in San Francisco, United States. The company develops browser-based games that work both stand-alone and as application widgets on social networking websites such as Facebook and MySpace....
which had a primary and a secondary component.
In April 2010 DST led a $135 million investment in Groupon
Groupon
Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto...
at a rumored $1.35 billion valuation. Subsequently, DST invested again as part of Groupon
Groupon
Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto...
’s $950 million round in January 2011.
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”.
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.