Advertising technology company Media.net has been acquired for $900 million in an all cash deal by a Chinese Consortium led by Zhiyong Zhang, the chairman of Beijing Miteno Communication Technology Company, a technology, media and telecom business.
The company was bought from serial entrepreneur Divank Turakhia’s Starburster TMT Investments. Media.net will continue to operate under Divyank Turakhia and its current management team and retain the business model. Divyank and his brother Bhavin led the overall transaction process, with Bhavin running the lengthy and complex legal negotiations in China.
The transaction closed with $426M paid by the consortium, and the rest will follow as per the agreed payment schedule. The money from the sale will go in to diversified pool of global investment funds co-owned by Divyank and Bhavin Turakhia.
Media.net makes products for advertisers as well as publishers and provides an entire suite of services, including creating, targeting and evaluating advertising campaigns. Media.net had inked a long-term deal with Yahoo to power Yahoo Bing Network Contextual Ads, which was similar to Google’s AdSense.
At the time of launch, the program was limited to websites that received majority of their traffic from the United States, Canada or United Kingdom, and was designed to work for websites that had premium content.
Founded in 2010, Media.net currently has operation centers in Austin, Texas, and Mumbai and Bangalore in India, besides in Dubai, UAE. Media.net has more than 800 employees, up from 650 in 2015.
Financials: Media.net’s 2015 revenue stood at $232 million. It currently manages more than $450M of annual advertising revenue via its platform with more than 50% of which is generated from mobile users.
Other exits by Divyank and Bhavin Turakhia: HostGator owner Endurance International Group completed the acquisition of Directi’s web presence business for $109.8 million in a cash & stock deal in January 2014, after initially agreeing to buy it August 2013. The deal included $82.6 million in cash and around $27.2 million worth of Endurance International’s common stock (2.27 million shares at $12 per share).