Media.net, has been acquired by a Chinese consortium from serial internet entrepreneur Divyank Turakhia’s Starbuster TMT Investments in an all-cash transaction of $900 million.
Media.net acquisition is confirmed after a press briefing.
The Consortium is led by Zhiyong Zhang, Chairman of Beijing Miteno Communication Technology, a technology, media and telecom (TMT) business listed on the GEM Board of the Shenzhen Stock Exchange. This completes the first step toward Media.net being acquired by, and integrated into, Beijing-based Miteno.
Media.net is a large, growing and profitable business with annual revenues of $232 million. It currently manages more than $450 million of annual advertising revenue via its platform, more than 50% of which is generated from mobile users.
More than 90% of Media.net’s total revenue comes from the U.S. With seven offices worldwide, including global headquarters in Dubai, and U.S. headquarters in New York City, the company has more than 800 employees.
“Our team has spent the last several years putting together one of the most comprehensive platforms for AdTech, and we are just getting started. The acquisition will enable us to be an even greater platform for innovation and investment on a global scale,” said Divyank Turakhia, Media.net’s founder and CEO.
A serial entrepreneur with a proven track record of performance, Turakhia has had considerable success with other exits. In 2014, Endurance International Group bought four brands that he co-founded with his brother, Bhavin Turakhia, for approximately $160 million.
He started his first Internet business in 1996 at the age of 14, made his first million at 18, first $100 million at 23, and now crossed his first $1 billion at the age of 34.
Beijing Miteno Communication Technology said that online advertising was a double-digit growing industry, but ‘notoriously compartmentalized and fractured across technologies, companies and geographies’. It added that it was impossible for publishers and advertisers to work with single-feature or single-product vendors without losing material efficiencies and increasing costs.
“In evaluating this deal, we looked at Media.net’s smart investments over many years to build a large and comprehensive technology stack. The company’s success in the US, which is arguably the world’s most competitive AdTech market, is impressive. We look forward to propelling Media.net’s growth in China,” said Zhiyong Zhang, Chairman, Beijing Miteno Communication Technology.
Media.net will continue to operate under Turakhia and its current management team and retain the business model and culture. The company expects to see opportunities to grow from the new customer base. Additionally, access to China capital markets will provide it with opportunities to grow organically and to acquire businesses, including in the US and China.
The transaction is now closed, with $426 million in cash being paid by the consortium, and the rest to follow as per the agreed payment schedule and definitive agreement. The money from the sale will go into diversified pool of global investment funds co-owned by Divyank Turakhia and his brother, Bhavin Turakhia.
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