AOL to acquire Adap.tv in $405MN dealParent Category: News | 09-08-2013
In a very clear statement to take advantage of the growing monetisation opportunities in online video, AOL has entered into an agreement to acquire Adap.tv.
Subject to customary closing conditions, the deal will be worth $405 million in aggregate comprising approximately $322 million in cash consideration and approximately $83 million in AOL common stock, subject to certain adjustments.
The Internet giant is striving to make a return to its glory days of the dot.com era and believes that by buying Adapt.tv it will be able to take a leading position in premium and programmatic video advertising. It sees the combination of Adap.tv and its AOL On online video offering as giving it a “unique end-to-end solution and video stack” for publishers and advertisers – from premium original production, to content aggregation and syndication platforms, robust video CMS technology, and now a leading programmatic video platform.
AOL regards Adapt.tv as offering the only complete global programmatic video technology stack for publishers and advertisers across all screens with a unified yield management platform for advertisers and publishers for planning, targeting, ad-serving and measurement.
Adapt.tv claims to be one of the fastest growing platforms on the Internet, having grown global revenue over 100% per year in each of the last three years. In 2012, Adap.tv supported more than 26,000 global ad campaigns, which ran on approximately 9,500 websites and was used by many top brand advertisers.
"AOL is a leader in online video and the combination of AOL and Adap.tv will create the leading video platform in the industry," explained Tim Armstrong, chairman and chief executive officer of AOL. "The Adap.tv founders and team are on a mission to make advertising as easy as e-commerce, and the two companies together will aggressively pursue that vision. Two trends are prevalent in the video space right now – the movement from linear television to online video and the shift from manual transactions to programmatic media buying. Adap.tv is positioned squarely in front of the huge opportunity these trends are presenting.”
Adap.tv will operate independently as part of AOL’s video organization which is led by Ran Harnevo, SVP, video, and be included as part of the overall solution offered by AOL Networks to its publisher and advertiser partners.
Commenting on the takeover, Amir Ashkenazi, CEO, Adap.tv, said: “At Adap.tv, we are focused on building the most important business within the most important category in digital advertising. We believe that most TV advertising will soon be traded programmatically on platforms like ours. The combination of AOL and Adap.tv accelerates our vision of efficient and effective TV and video advertising.”