InMobi founders buy back $250M stake from SoftBank
What's the story
InMobi's founders have acquired a 25-30% stake from Japanese investor SoftBank. The deal is expected to net SoftBank around $250 million. Before the transaction, SoftBank held a 35% stake in the mobile advertising giant. After selling shares to the founders, it now holds between 5-7% of the company. This move will prevent SoftBank from being labeled as a promoter for IPO-bound InMobi.
Valuation details
InMobi's valuation and share buyback strategy
The share buyback deal was executed at a valuation of under $1 billion. To finance this acquisition, InMobi's founders have pledged their shares to raise debt. This move is similar to other new-age companies that have taken a similar route in the past. Notably, SoftBank had first invested $100 million in InMobi back in 2011, followed by another investment of the same size a year later.
Debt acquisition
InMobi secures $350 million in debt financing
In a related development, ET reported that InMobi and its founders have secured $350 million in dollar-denominated debt from Varde Partners, Elham Credit Partners, and SeaTown Holdings. This further highlights the company's aggressive financial maneuvers as it continues to navigate the competitive landscape of mobile advertising.