Chinese Group Buys Yahoo Ad Partner Media.net For $900 Mln

(RTTNews) - A group of Chinese investors acquired ad-tech startup Media.net for about $900 million in cash. The Consortium is led by Zhiyong Zhang, the chairman of Beijing Miteno Communication Technology Co. Ltd.

The transaction is now closed, with $426 million being paid by the Consortium, and the rest to follow as per the agreed payment schedule and definitive agreement. The money from the sale will go in to diversified pool of global investment funds co-owned by Divyank Turakhia and Bhavin Turakhia.

Media.net, a Yahoo Inc (YHOO) ad partner, will continue to operate under Div Turakhia and its current management team and retain the business model and culture that have fueled the company's success.

Media.net is a large, growing and profitable business with 2015 IFRS revenue of $232 million. It currently manages more than $450 million of annual advertising revenue via its platform, more than 50 percent of which is generated from mobile users. Ninety percent of Media.net's total revenue comes from the U.S. With seven offices worldwide, including global headquarters in Dubai, and U.S. headquarters in New York City, Media.net has more than 800 employees, up from 650 in 2015.

The company expects to see opportunities to grow from the new customer base. Additionally, access to China capital markets will provide Media.net opportunities to grow organically and to acquire businesses of all sizes worldwide, including in the U.S. and China.