Paltalk sells back shares to VC, sees continued stability

Paltalk, the video-based social chat network, announced it has repurchased a 20 percent stake in the company it had sold to Softbank Capital for $6 million five years ago. Judy Shapiro, senior vice president of marketing, said the company purchased the shares with cash on hand, and now is completely in control of its strategy going forward.

Shapiro said company CEO Jason Katz approached the VC about the buyback, and Softbank agreed the terms were amenable.

"Softbank has been an excellent partner and will remain a powerful part of our DNA," Shapiro said. "We now have more flexibility to acquire or merge, and Softbank was able to monetize their investment, so it really worked out well for all involved."

Shapiro said Paltalk has 3 million to 4 million subscribers and generates revenue from about 5 percent of them. The company has survived for 10 years and still retains the four initial members of its original development team, according to Shapiro. As part of the deal, Softbank Capital's will give up its seat on Paltalk's board. 

For more:
- see the paidContent.org article here 

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