Independent sell-side advertising platform Magnite has made a deal with European media giant RTL Group to buy video ad serve player SpotX for $US1.17 billion in cash and shares.
Combined, Magnite and SpotX will be the largest independent CTV and video advertising platform in the programmatic marketplace.
Mike Shehan, co-founder and CEO at SpotX: “As CTV flourishes and the media industry continues to turn to programmatic, there is a huge opportunity for an independent scaled company to offer the single most comprehensive technology in the market.
"We built SpotX with the mission of becoming the leading global video advertising platform, and our goal is now coming to fruition with Magnite. I am thrilled about what we will achieve together.”
Thomas Rabe, CEO of RTL Group: “We are excited about the combination of SpotX and Magnite, two leading CTV advertising providers. This transaction allows for significant value creation and upside potential for the parties, sellers and advertisers in the growing CTV market. We look forward to participating in the future success of SpotX and Magnite as shareholders in the combined entity.”
RTL Group is being paid $US$560 million in cash and 14 million shares of Magnite. RTL Group took full ownership of SpotX in 2017
Together, Magnite and SpotX will serve some of the world’s leading programmers, broadcasters, platforms and device manufacturers, including A+E Networks, Crackle Plus, The CW Network, Discovery, Disney/Hulu, Electronic Arts, Fox Corporation, fuboTV, Microsoft, Newsy, Philo TV, Pluto TV, Roku, Samsung, Sling TV, Tubi, ViacomCBS, Vizio, Vudu, WarnerMedia and Xumo.
Estimated full year 2020 combined net revenue for the two businesses would have been $US350 million.
Combined connected TV and video net revenue would have represented about 67% of total net revenue in the December quarter.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at firstname.lastname@example.org