Media.net, a key player in the ad-tech space, announced today the closing of its acquisition by a Chinese Consortium from serial internet entrepreneur Divyank Turakhia's Starbuster TMT Investments in an all-cash transaction valued at approximately $900M USD.
The Consortium is led by Mr. Zhiyong Zhang, the chairman of Beijing Miteno Communication Technology Co. Ltd. (SZ. 300038), 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 2015 IFRS revenue of $232M. It currently manages more than $450M of annual advertising revenue via its platform, more than 50 percent of which is generated from mobile users. Ninety percent 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, Media.net has more than 800 employees, up from 650 in 2015.
A serial entrepreneur with a proven track record of performance, Div Turakhia has had several lucrative exits prior to this deal. In 2014, Endurance International Group (NASDAQ:EIGI) bought four brands that he co-founded with his brother, Bhavin Turakhia, for approximately $160M. Div Turakhia started his first internet business in 1996 at age 14, made his first $1M at 18, first $100M at 23, and now crossed his first $1B at the age of 34.
This is the biggest bootstrapped deal (that we know of) - that too involving an Indian company which never raised any external cash.
Here is what Directi founder, Bhavin has to say on the acquisition.
Congratulations to all of us, the media.net team, Divyank Turakhia (who built this business from ground up), Vaibhav Arya Namit Merchant and many others. Here are some salient aspects of the transaction -
* After our exit of our web presence businesses in 2014 at $160 million to Endurance this is a huge leap ($900 million)
* Much like all our businesses, this was entirely bootstrapped. No VCs, no investors
* Div will continue to run the show and continue to grow the business for the forseeable future
* On a lighter vein - we have now joined the 3 comma club
Congrats fellas !