|Directi Co-Founders Divyank Turakhia (left) and Bhavin Turakhia at the 2008 T.R.A.F.F.I.C. West conference in Las Vegas. (Photo: DNJournal)|
The flow of Chinese capital into foreign ad-tech companies increased this morning with the acquisition of Media.net for $900 million USD. A consortium will be paying cash for the startup with key operation centers in New York City and Dubai. Eventually the company is set to be acquired from the consortium by Miteno Communication Technology, a Chinese tech conglomerate. The transaction is one of the largest ad-tech deals in history, ahead of notable exits like Google’s $750 million dollar acquisition of AdMob in 2010 and Twitter’s $350 million dollar acquisition of MoPub in 2013.
Media.net is a subsidiary of the Directi Group, which Divyank runs with his brother Bhavin. Skenzo, one of the largest companies in the Directi portfolio takes a different approach to traffic monetization by focusing on parked domains. Essentially this is a method of making money off registered domains that have not been linked to a developed website by targeting individuals who may have made an error in entering the web-address for highly trafficked sites.
Turakhia said his company was not in a hurry to sell, and is growing and profitable. Yet, in thinking about the future of the company, he hired bankers to investigate a possible transaction and got back a lot of interest. Media.net received seven bids in the final round and more in earlier rounds with final bids only differing by 10-30 percent, according to Turakhia.
A serial entrepreneur with a proven track record of performance, Turakhia has had considerable success with other exits. In 2014, Endurance International Group bought four brands that he co-founded with his brother, Bhavin Turakhia, for approximately $160 million.
He started his first internet business in 1996 at the age of 14, made his first million at 18, first $100 million at 23, and now crossed his first $1 billion at the age of 34.
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The brothers great friends and early supporters of the Domain industry and its conferences, have had great press over the last 20 months. Here's an example: Directi to hire over 1000 people by the end of 2016 via @TOICitiesNews