China consortium buys ad-tech venture Media.net for $900 million
NEW DELHI/BENGALURU: A consortium of Chinese investors has acquired ad-tech venture Media.net for about $900 million in a rare reverse merger deal being touted as the largest in the sector and which propels its India-born founders into the coveted ‘three-comma club’.
Founded by Mumbai-born serial entrepreneurs Divyank and Bhavin Turakhia, Media.net develops products for advertisers as well as publishers, providing them with an entire suite of services, including creating, targetting and evaluating advertising campaigns, as well as connecting publishers through their Yahoo-Bing network.
In terms of value, the all-cash deal puts in shade other acquisitions, including Google’s buyout of AdMob for $750 million in 2010, followed by Twitter’s acquisition of MoPub for $350 million three years later, both reported by TechCrunch.
The surprising deal also comes at a time global advertising tech industry is struggling, which includes companies such as Bengaluru-based In-Mobi.
According to the terms of the two-phase deal, the Chinese consortium led by Beijing Miteno Communication technology Chairman Zhiyong Zhang and other unnamed institutional investors has already paid $426 million, with the rest — $474 million — to be paid out as per an agreed payment schedule and definitive agreement. Beijing Miteno Communication Technology is a Shenzhenlisted technology, media and telecom company.
Source: Economic Times of India