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 While many startups are hunting around for funding, online video chat company Paltalk is doing pretty much the opposite -- it's buying back shares from one of its VC investors. The New York startup is set to announce Wednesday that it is purchasing a stake bought for $6 million by Softbank Capital Partners in 2004.For Paltalk, which was founded in 1998, the deal puts more ownership back in the hands of management and employees. The company claims that it became profitable soon after the Softbank investment (that round was its second and last) and has remained so ever since, thanks in part to the popularity of Webcams and online video communications. But apparently Softbank will come out OK in the deal too. A Paltalk spokesman said the firm received a 5% annual dividend on its shares in the startup. "They received all that plus more," the spokesman said, but declined to detail how exactly what overall return Softbank earned or how big the firm's stake was. "This buyback is a profitable ending to our investment in the company," said Softbank partner Mike Perlis. - Olaf de Senerpont Domis See June 2008 post on Paltalk from Dealscape
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