Kremlin Owns Facebook

Kremlim Facebook

Kremlim Facebook

Not exactly Kremlin, but some smart guys from Russia.  Not exactly own Facebook, but have a 10% stake in it.

Even my mom heard on the news two weeks ago that Goldman Sachs piled almost half a billion into Facebook and in the process made the Social Network company worth $50 billion.  Not as prominent was the Russian angle.  Turns out that DST (Digital Sky Technologies), an investment company with heavy roots in the land of borscht and honey, had been all over Facebook for a couple of years now. It also has its fingers in all the darlings of the current ‘social networking’ version of the .com bubble: Groupon, Zinga, and now trying for Twitter.

Russians were getting a better deal for their money in 2009, having paid in a couple of installments roughly as much as Goldman Sachs just did, but ending-up with ten times the shares.  The deal for Goldman sucks, and to make it seem better, DST kicked-in another $50 million, at this crazy new valuation.

Digital Sky Technologies

Digital Sky Technologies

My apologies to non-MBA readers. Financial types say that Facebook has a ‘valuation’ of $50 billion because Goldman Sachs paid $500 million and got 1% of the shares.

About wallybee

A busy busy bee with a compulsion to write. View all posts by wallybee

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