Acquisition will fuel Media.net’s global expansion strategy and provide access to China’s world-class talent and capital markets
Media.net, a key player in the ad-tech space, on its website 2 days ago announced the conclusion 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.
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| Deal Signing Ceremony in Dubai — Div Turakhia (right) and Zhang Zhiyong (left) |
Media.net’s founder and CEO, Div Turakhia, expressed deep convictions that his team had “...put together one of the most comprehensive platforms for ad tech...” over the last few years, and he believes they are just getting started. He further adds, “The acquisition will enable Media.net to be an even greater platform for innovation and investment on a global scale. Together, we can accelerate the company's growth and deploy new products and services that will add value for our customers. Media.net’s leadership team and employees are excited to enter into this new phase of growth.”
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.
“Online advertising continues to be a double-digit growth industry, despite already being one of the largest revenue-generating businesses online.” said Mr. Zhiyong Zhang. “In evaluating this deal, we looked at Media.net’s smart investments over many years to build a large and comprehensive technology stack... Media.net has a proven track record of year-over-year growth, superior technology and solid position to continue to grow in the future. The company’s success in the U.S., which is arguably the world’s most competitive ad-tech market, is impressive. We look forward to propelling Media.net’s growth in China.”
Media.net will continue to operate under Div Turakhia and its current management team and retain the business model and culture that have fueled the company’s success. The business has significant growth and upside opportunities globally.
The deal positions Media.net to grow, innovate and develop new technologies and features at a faster pace. It will provide significant value by accelerating Media.net’s entry in the vast and expanding Chinese ad tech market, currently the world's second largest with expectations of significant growth in online ad spend. The company expects to see opportunities to grow from the new customer base. Additionally, access to China capital markets will provide Media.net opportunities to grow organically and to acquire businesses of all sizes worldwide, including in the U.S. and China.
The transaction is now closed, with $426M 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 in to diversified pool of global investment funds co-owned by Divyank Turakhia and Bhavin Turakhia.
About Media.net
Founded by serial internet entrepreneur Divyank Turakhia, Media.net is a leading global advertising technology company that develops innovative products for both publishers and advertisers. Since its founding, Media.net has made substantial investments in its business and built one of the most comprehensive portfolios of advertising technology in the industry across search, mobile, display, native, local, products and video. Its platform and products are licensed by some of the largest publishers, ad networks and other ad tech companies worldwide.
By market cap, Media.net is one of the Top 5 largest ad tech companies worldwide. By revenue, Media.net is the second largest contextual advertising business worldwide. Media.net has 800-plus employees in key operation centers across - New York, Los Angeles, Dubai, Zurich, Mumbai and Bangalore. Media.net’s US headquarters is based in New York and Global headquarters in Dubai.
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