Roku to Acquire dataxu to Strengthen Industry-Leading OTT Advertising Platform
October 22 2019 - 9:00AM
Business Wire
Roku, Inc. (NASDAQ: ROKU) today announced that it has
entered into an agreement to purchase Boston-based dataxu, a
demand-side platform (DSP) that enables marketers to plan and buy
video ad campaigns.
dataxu provides marketers with an automated bidding and
self-serve software solution to manage ad campaigns
programmatically across digital platforms. dataxu utilizes advanced
TV and OTT media planning tools, a proprietary device graph, and
data science to help marketers optimize for business outcomes
across TV, OTT, desktop and mobile.
As the No. 1 U.S. TV streaming platform by hours streamed, Roku
streams more ad-supported hours than any other OTT platform,
according to a June 2019 comScore analysis. With more than 30.5
million active accounts as of June 30, 2019, a direct consumer
relationship, proprietary data and inventory, and advertising
technology built directly into its operating system, Roku is
already a top OTT ad solutions provider to Ad Age Top 200
marketers.
The acquisition of dataxu’s platform will complement Roku’s
industry-leading OTT advertising platform and enable Roku to
provide marketers a single, data-driven software solution to plan,
buy, and optimize their ad spend across TV and OTT providers.
dataxu brings an experienced team – including strong talent in
software engineering, data science and analytics – to work with new
and existing marketers on Roku’s proven advertising platform.
In Forrester’s New Wave: Cross-Channel Video Advertising
Platforms 2019 report, dataxu recently received highest scores for
its current offering in cross-channel video advertising. dataxu was
the only platform in the report to earn a “differentiated” rating
in all five of the following categories: OTT Buying, Video Buying,
Audience Discovery, Measurement, and Product Roadmap.
Advertisers today spend more than $70 billion dollars on
traditional TV. According to Magna Global, OTT accounts for 29
percent of TV viewing but so far has only captured three percent of
TV ad budgets. As viewers continue to migrate to streaming,
automated media buying solutions are expected to unlock more
advertising investment into OTT.
“TV advertising is shifting toward OTT and a data-driven model
focused on business outcomes for brands,” said Anthony Wood, chief
executive officer at Roku. “The acquisition of dataxu will
accelerate our ad platform while also helping our content partners
monetize their inventory even more effectively.”
Terms
Under the terms of the agreement, Roku is purchasing dataxu for
aggregate consideration of $150 million in cash and shares of Roku
Class A Common Stock. The acquisition agreement has been approved
by each company’s board of directors and is anticipated to close in
the fourth quarter of 2019, subject to customary closing
conditions, including regulatory approvals. Roku will discuss the
acquisition on its upcoming third quarter financial results
conference call.
About Roku, Inc.
Roku pioneered streaming to the TV. We connect users to the
streaming content they love, enable content publishers to build and
monetize large audiences, and provide advertisers with unique
capabilities to engage consumers. Roku TV™ models and Roku
streaming players are available around the world through direct
retail sales and licensing arrangements with TV OEMs and service
operators. Roku audio products are available in the U.S. through
direct retail sales. Roku is headquartered in Los Gatos, Calif.
U.S.A.
This press release contains “forward-looking” statements that
are based on our beliefs and assumptions and on information
currently available to us on the date of this press release.
Forward-looking statements may involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from those
expressed or implied by the forward-looking statements. These
statements include but are not limited to statements about the
benefits of the pending acquisition of dataxu, including the
acceleration of our ad platform, the anticipated timing of the
closing of the transaction, the benefits and features of future
product or service offerings of the combined entity, and trends in
television advertising. Factors that may cause our actual results
to differ materially from those in any forward-looking statement
include: the risk that the transaction may not be completed in a
timely manner or at all; any restrictions or limitations imposed by
regulatory authorities; the ability to realize the anticipated
benefits of the proposed transaction, including the possibility
that the expected benefits from the proposed transaction will not
be realized; the impact of the acquisition on dataxu’s existing DSP
business; our ability to retain key dataxu personnel; our
effectiveness in integrating the dataxu platform and operations
with our business; our ability to realize our broader strategic and
operating objectives; the effect of the announcement of the
acquisition on Roku’s and dataxu’s respective businesses, including
the possibility that the announcement may result in delays in
customers’ purchases of products or services; and the effects of
any litigation or other proceedings to which we are or may become a
party.
Further information on these and other risks and uncertainties
are included in the reports Roku, Inc. files with the Securities
and Exchange Commission, including our Form 10-K for the year ended
December 31, 2018 and our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2019. Copies of reports filed with the SEC
are posted on Roku’s website and are available from Roku without
charge. Except as required by law, we assume no obligation to
update these forward-looking statements publicly, or to update the
reasons actual results could differ materially from those
anticipated in the forward-looking statements, even if new
information becomes available in the future.
Roku and the Roku logo are registered trademarks and Roku TV is
a trademark of Roku, Inc. in the U.S. and in other countries. Trade
names, trademarks and service marks of other companies appearing in
this press release are the property of their respective
holders.
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version on businesswire.com: https://www.businesswire.com/news/home/20191022005647/en/
Media Diane Carlini dcarlini@Roku.com
Investor Relations ir@Roku.com
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