Media.net, an ad tech start-up founded by Divyank Turakhia, was acquired August in an all-cash $900M worth deal by a Chinese Consortium, helmed by Mr. Zhiyong Zhang. Mr. Zhang chairs Beijing Miteno Communication Technology Co. Ltd. (SZ. 300038), a technology, media and telecom business.
Media.net is a large and thriving business with $232M in IFRS revenue in 2015, ninety percent of which comes from the U.S. market, arguably the most competitive market in advertising technology. The business is headquartered in New York and Dubai, with seven offices around the world.
Mr. Turakhia, who started his first online business when he was just 14, is a serial entrepreneur with a number of successful projects behind him. In 2014 he and his brother Mr. Bhavin Turakhia sold four brands they co-founded for $160M to Endurance International Group.
Mr. Zhang pointed out that Media.net has achieved an impressive year-over-year growth through investments and products that overcome the notorious compartmentalization in the industry. Media.net’s products auto-learn and optimize so that they display the most relevant advertisements to users with a high level of user privacy, while at the same time the publishers’ revenue and advertisers’ ROI are maximized.
Media.net, which will be integrated in Beijing-based Miteno, will retain the current business model and culture, together with the management team lead by Mr. Turakhia. Media.net acquisition is expected to strengthen the target’s poise for growth with access to China’s capital and talent markets. According to eMarketer research, Chinese online ad spend is projected to go beyond $40 billion this year, which is 30% more than in 2015.
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