The team of the Chinese investors mentioned that it’s acquiring an Ad Technology startup Media.net for $900 million approximately in the form of cash. This plans to eventually sell the company to an obscure telecommunications company whose shares were suspended the trading since previous year.
Media.net is the firm which is based in New York, and Dubai is now advertising this third largest ad-tech acquisition in the history. However, this complicated deal is more closely reflects a reverse merger and the private company takes over the public one and also sidesteps the causalities and formalities of the public offerings.
Divyank Turakhia who is the tech entrepreneur has started the Media.net in the year 2010 and bootstrapped the business. This firm provides the technology which will power the contextual ads offered by Yahoo and Bing search engine by Microsoft. The system is similar one provided by the Google for choosing which ads to show based on the content of the web page they appear.
This deal comes as the merger activity which has involved in the ad-tech companies is declining. There were about 43 deals during the first half of the year as per the sources stated by the research company PitchBook Data. 45% of the declining from the same period is happened in the previous year. Media.Net has generated around $232 Million in the last year revenue which is more than half generated from the mobile visitors. Says Turakhia. He also added that the US accounts for the 90% of Media. Net revenue, but the firm is looking forward to making the great push into the China soon after this deal.
The group which is buying the Media.Net is led by the Chairman of Beijing Miteno Communication Technology, Zhang Zhiyong. Zhang said through a translator that “His telecom firm has been “moving aggressively” into mobile advertising and hoped to accelerate the transition through an acquisition.”