Naspers stake in Facebook worth $343m

Investment

South Africa-based multinational media conglomerate Naspers has an indirect stake in Facebook worth $343 million (R2.3 billion) following a multimillion-dollar injection into the social-networking site by US bank Goldman Sachs and Russian investment firm Digital Sky Technologies (DST).

This funding boosted Facebook’s value to $50bn. Naspers owns 30 percent in Mail.ru, Russia’s leading internet group, which in turn owns 2.4 percent of Facebook through its sister company DST.

Abdul Davids, the Head of Research at Kagiso Asset Management, said the Facebook stake accounted for 15 percent of Mail.ru’s value but this meant that its other businesses were either under-valued or Facebook was overpriced.

“Facebook is making very minimal revenue at the moment. One can argue that at $50bn it is a bit on the rich side.” Davids said that if Facebook were to list on the local bourse, it would dwarf the worth of MTN and other Top40 index shares. It would also double Naspers’ valuation.