Jason Katz

Happy Chat: Paltalk Buys Back Its Shares From Softbank, at a Premium

Peter Kafka in Media on July 15, 2009 at 3:35 am PT

Here’s a funding story you don’t see often, recession or no: A start-up buying back its shares from its venture capitalist, at a premium. But that’s the transaction that video-chat firm Paltalk and Softbank have completed. Paltalk, which sold off 20 percent of its equity to Softbank for $6 million in 2004, has bought the shares back. No one has spelled out a purchase price, but I’m told the deal will be considered a “single” for Softbank–it gets its capital back, plus a return–which in this economy ought to be a home run.