Digital Sky Technologies has been in the news quite a bit of late, boosting its stake in social-networking site Facebook to more than 5% mere days after leading a $180 million investment round for online-gaming company Zynga.
DST partner Alexander Tamas spoke with Inside Facebook, and highlights follow:
Zynga didn’t need an IPO from a business perspective. The main reason to consider it was liquidity for employees and early investors.
Zynga is going to be acquisitive in the merger-and-acquisition scene going forward. Right now, we think that Facebook and Zynga are in their really early stages.
We’re looking for extremely high-growth-profile Web companies. We’re pretty agnostic when it comes to the location of the company. We thought (Zynga founder and CEO) Mark Pincus and the other founders we invest in have a strong vision for the future, rather than trying to sell in one or two years. And in terms of market position, we invest in companies that are at the top. We think that the No. 1 players can get a disproportionate share of the market.
Overall, Zynga is obviously an important part of the Facebook platform, because it draws a lot of people to the site every day.
We’re more like Berkshire Hathaway than a venture-capital firm. That’s what resonated with Mark Pincus and Mark Zuckerberg. We told them: “You’ll never have any pressure to sell or go public. You won’t have to do what’s not right for the business.”