Panos Bethanis Went $4.5 million in the Hole to Buy Back His Company –Inc.
He had founded the company five years earlier but had sold a majority stake to a pair of venture capital firms in 2005. Now, with the company struggling, Bethanis saw an opportunity to get his company back.
For Bethanis, then 31, regaining control of DirectoryM was partly a matter of pride. Though he still had a 3 percent stake and a seat on the board, the investors had removed him from the CEO post, leaving him with no meaningful management role. In fact, he had started a new company, Interaction Media Group, or IMG, that offered a similar product. Now he wanted to combine the two companies, which he believed would speed IMG’s growth but would cost a bucket of money and pose big risks.
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