AdTech company Media.net, that has been famous for running ads for companies like Yahoo, Bing, Forbes, Cosmopolitan and other big names, has been acquired by China based Miteno Communication Technology and others (forming a Consortium). The acquisition deal is worth USD 900 million, making this one of the largest acquisitions of AdTech companies. The event also adds on the the trend of Chinese business houses taking over American Companies.
Miteno that is leading the deal has been in the business for over a decade and specializes in IT infrastructure investments and mobile Internet operations and services. Being in this sector the deal to acquire an AdTech makes lot of sense. The all cash deal will be paid out in two tranches. The first USD 426 million will be paid immediately by the Consortium, and the remaining USD 474 million will follow in a second installment, later.
Media.net has seven offices in various locations across the world, including global headquarters in Dubai, and U.S. headquarters in New York City. The company has annual revenue of USD 232 million and currently manages more than USD 450 million of annual advertising revenue via its platform. Mobile users constitute a major part of its revenue generating client base. Divyank Turakhia, Media.net’s founder and CEO said in a statement:
“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.”
34 year old Turakhia is a serial entrepreneur, he made his first million at the age of just 18, and is moving on to cross the USD 1 Billion mark post this acquisition. Praising him indirectly Miteno’s chairman, Mr. Zhang said in a statement.
“The primary reason for the acquisition was not [Media.net’s] high profit, but more of the management team and the technology staff.”