Business

Indian-origin Brothers Enter Billionaire Club By Selling Media.net To Chinese Investors for $900 Million

Indian origin Brothers Enter Billionaire Club By Selling Medianet To Chinese Investors for 900 Million pardesi news 1472180838

The Indian-origin Turakhia brothers, who sold their business for $900 million, have succeeded in pulling off this ‘massive’ transaction amid an overall slowing market.

The Mumbai-born brothers, Divyank Turakhia 34, and Bhavin, 36, have struck an all-cash deal to divest their company Media.net, merging it with the China-listed Beijing Miteno Communication Technology, making one of the largest M&As in the ad tech industry. The ad tech firm was sold for a record $900 million.

The deal value makes it the third-largest acquisition in the ad tech industry, followed by acquisition of DoubleClick by Alphabet Inc, a Google's subsidiary, and the acquisition of aQuantive by Microsoft. Turakhia stated that there was incredible interest in his company as there are only a limited number of companies successful in the large and growing ad tech industry. The products of Media.net are licensed by different publishers and ad networks and are able to auto-learn as well as display the most appropriate advertisements to users.  

Media.net, a Yahoo Inc ad partner, had received interest from seven bidders, including a publicly listed company based in the United States. However, the bid did not materialise due to significant decline in the Media.net's stock value. Turakhia informed that the deal provides foray into Chinese online advertising market, which is ranked second largest in the globe. eMarketer, a research firm, expects the digital spend in China to become $40.42 billion in 2016, representing a 30 percent increase compared to the previous year.  Founded six years ago, Media.net is based in Dubai and New York, and receives 90 percent of its revenue from the United States. It clocked about $230 million in revenue in 2015, with over 50 percent coming from mobile users.

It is expected that the Chinese consortium will purchase Media.net from Turakhia's Starbuster TMT Investments. The Chinese consortium, led by Zhang Zhiyong, the chairman of telecom firm Beijing Miteno Communication Technology Co, has made a payment of $ 426 million in advance for the acquisition.

Post the sale, Divyank who runs Media.net will continue to steer it post the buyout while Bhavin will manage the Mumbai headquartered Directi, which operates 4 startups in web communications and payments space. 

About the author

Patrick Callahan

Pardesi News Reporter

Pardesi News Reporter

Leave a Comment

Select your Current City