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Adtech Firm MNTN Raises $187.2 Million in U.S. IPO, Valued at $1.24 Billion

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Marketing technology company MNTN and its investors raised $187.2 million in a U.S. initial public offering (IPO), the firm announced on Wednesday, pricing its shares at the top end of the marketed range at $16 apiece. The IPO sets the company’s pre-market valuation at approximately $1.24 billion.

The Austin, Texas-based firm, founded in 2009 by CEO Mark Douglas, specializes in performance marketing via on-demand television. Its flagship offering, Performance TV (PTV), launched in 2018, has seen customer growth of nearly 89% year-over-year for the first quarter of 2024.

Key IPO Details:

  • Shares sold: 11.7 million

  • Pricing range: $14–$16; final price: $16

  • Ticker: MNTN

  • Exchange: New York Stock Exchange

  • Funds expressing interest: BlackRock, up to $30 million worth of shares

  • Lead underwriters: Morgan Stanley, Citigroup, and Evercore

The IPO follows the market debut of eToro, which marked the first U.S. IPO after tariff concerns postponed multiple listings. MNTN’s listing was similarly delayed amid market downturns, including the recent “Liberation Day” volatility.

Company Snapshot

  • Founded: 2009

  • Headquarters: Austin, Texas

  • Product focus: Performance TV (PTV) marketing platform

  • Creative leadership: Actor Ryan Reynolds serves as Chief Creative Officer

  • Platform ad impact: Estimated $27.1 billion in revenue generated from 2019 to 2024 via ad performance

“This IPO is a validation of our approach to connecting brands with consumers through smarter television advertising,” CEO Mark Douglas said in a statement.

Ownership & Voting Power Post-IPO

  • CEO Mark Douglas retains 29.9% of Class B shares, equating to 26.3% voting power

  • Baroda Ventures, an early investor, holds 19.4% of voting power

MNTN’s IPO capitalizes on a rebounding financial market and shifting U.S. trade dynamics, which have provided a more favorable environment for public listings after a sluggish start to 2024.

Tech M&A Advisory Firm AXOM Hires Morgan Stanley’s Buzz Black for Software Dealmaking

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AXOM Partners, a boutique advisory firm specializing in technology, has hired experienced investment banker Buzz Black from Morgan Stanley to strengthen its coverage of the enterprise software industry. Black, known for his work on significant software deals, will join AXOM in May following a period of gardening leave and will be based in San Francisco.

During his time at Morgan Stanley, Black advised on several high-profile software transactions, including Blackstone and Vista Equity Partners’ $8.4 billion acquisition of Smartsheet and KKR’s $4.8 billion deal for Instructure. He also played a role in cybersecurity transactions, such as the $560 million sale of Demisto to Palo Alto Networks and the 2017 sale of eSentire to Warburg Pincus.

In an interview, Black discussed the growing trend among large strategic buyers who often prefer acquiring companies with strong teams and cutting-edge technology, enabling faster market entry. His addition to AXOM is expected to enhance its ability to cover large enterprise software deals, complementing the firm’s existing focus on early-stage, venture-backed startups.

AXOM, founded in 2023 by Brandon Hightower, Alan Bressers, and Ross Weiner (former Qatalyst Partners bankers), has quickly established itself in the AI sector, advising on several high-profile deals such as Rockset’s sale to OpenAI, Nvidia’s acquisition of OctoAI, and MongoDB’s acquisition of Voyage AI. According to Hightower, Black’s experience will add valuable coverage and insight into both the buyer and strategic target sides of AI-focused transactions.

Banks Sell $5.5 Billion of Musk’s X Debt to Investors

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Banks led by Morgan Stanley have successfully sold $5.5 billion of the $13 billion debt incurred to finance Elon Musk’s $44 billion acquisition of Twitter, now rebranded as X. This sale is part of an effort to offload a significant portion of the debt, which includes a combination of secured and unsecured loans.

The deal, which was marketed to a select group of investors, included banks such as Bank of America, Barclays, Mitsubishi UFJ, BNP Paribas, Mizuho, and Societe Generale. The debt was initially offered at a price range of 90-95 cents on the dollar, but it was ultimately priced at 97 cents, resulting in a potential profit for the banks involved. Investors in this loan will receive a yield of 11%.

This marks the second attempt by these banks to sell down the debt since Musk’s 2022 acquisition. A prior attempt in late 2022 to sell the unsecured loan failed, as the bids were significantly lower, at 60 cents to the dollar, potentially causing a large loss for the banks. This time, however, investors seem to be more confident in X’s prospects, partly due to Musk’s ties to the newly elected Trump administration and his involvement in the AI startup xAI, which may drive further interest in the platform.

Despite the improved pricing, some investors have been hesitant to buy into the debt, given X’s challenges with advertisers and uncertain revenue growth after Musk’s changes to the platform. Additionally, X still has no official credit rating, which raises concerns among potential buyers. Nevertheless, the sale signals growing investor confidence, despite the risk that the platform’s revenue might not justify the price of the debt.