Pandora to Acquire Leading Digital Audio Ad Tech Firm AdsWizz
March 21 2018 - 9:00AM
Business Wire
The acquisition will create the largest digital
audio advertising ecosystem globally.
Pandora (NYSE: P), the largest music streaming service in the
U.S., today announced it will acquire AdsWizz, the global leader in
digital audio ad technology. The addition of AdsWizz will upgrade
Pandora’s ad tech capabilities, provide its advertisers with
greater audience reach, and expand the company’s revenue
opportunities.
AdsWizz is one of the few ad tech firms that is completely
dedicated to digital audio, serving some of the largest players in
the industry. With digital audio advertising growing 42%
year-over-year, according to the IAB, the combined offering of
Pandora and AdsWizz will capitalize on this trend, while making it
easier for publishers to monetize their inventory, and for
advertisers to buy and measure their campaigns.
“Since I joined Pandora six months ago, I have highlighted ad
tech as a key area of investment for us. Today we took an important
step to advance that priority and accelerate our product roadmap,”
said Roger Lynch, CEO of Pandora. “With our scale in audio
advertising and AdsWizz’s tech expertise, we will create the
largest digital audio advertising ecosystem, better serving global
publishers and advertisers — while improving Pandora’s own
monetization capabilities.”
Once fully integrated, advertisers will be able to transact
through AdsWizz’s global marketplace across Pandora and other
leading audio publishers. Pandora will support the growth of
AdsWizz’s core business and invest in technology development that
serves all constituents.
“For the last ten years, our mission at AdsWizz has been to
enable the global monetization of digital audio by building
innovative advertising technologies for music streaming services,
digital broadcasters and podcasters. We believe in providing value
to all stakeholders — brands, publishers and listeners — through
engaging and well-targeted advertising experiences,” said Alexis
van de Wyer, the CEO of AdsWizz. “Now is the time to combine forces
with Pandora, one of the leaders and pioneers in digital audio, and
accelerate our ability to provide solutions that meet the
increasingly sophisticated needs of advertisers and digital
audiences.”
At the closing of the transaction, AdsWizz will become a
subsidiary of Pandora, with Mr. van de Wyer remaining the CEO of
AdsWizz. Pandora agreed to pay $145 million in a combination of
cash and stock, with a minimum of 50 percent paid in cash and the
remainder to be paid, at Pandora’s election, in either cash or
stock (with the stock conversion based on the
dollar-volume-weighted average trading price for Pandora's common
stock for 10 trading days prior to the closing), subject to certain
price adjustments at and after closing. The acquisition does not
change the first quarter 2018 guidance or the full year 2018
commentary that was provided on Pandora’s most recent earnings
call. This transaction is expected to close in the second quarter
of 2018 and is subject to customary closing conditions and
regulatory approval.
ABOUT PANDORA
Pandora is the world’s most powerful music discovery platform –
a place where artists find their fans and listeners find music they
love. We are driven by a single purpose: unleashing the infinite
power of music by connecting artists and fans, whether through
earbuds, car speakers, live on stage or anywhere fans want to
experience it. Our team of highly trained musicologists analyze
hundreds of attributes for each recording which powers our
proprietary Music Genome Project®, delivering billions of hours of
personalized music tailored to the tastes of each music listener,
full of discovery, making artist/fan connections at unprecedented
scale. Founded by musicians, Pandora empowers artists with valuable
data and tools to help grow their careers and connect with their
fans.
www.pandora.com | @pandoramusic | www.pandoraforbrands.com |
@PandoraBrands | amp.pandora.com
ABOUT ADSWIZZ
AdsWizz has created the end-to-end technology platform that is
powering the digital audio advertising ecosystem. AdsWizz powers
well-known music platforms, podcasts and broadcasting groups
worldwide with a comprehensive digital audio software suite of
solutions that connect audio publishers to the advertising
community. From dynamic ad insertion to advanced programmatic
platforms to innovative new audio formats, AdsWizz efficiently
connects buyers and sellers in digital audio. AdsWizz is
headquartered in San Mateo, California, with a presence in 39
countries around the world.
“SAFE HARBOR” STATEMENT
This press release contains forward-looking statements within
the Private Securities Litigation Reform Act of 1995, including,
but not limited to, statements regarding the completion of the
acquisition of AdsWizz, and the timing of doing so, and the
benefits to Pandora from the acquisition of AdsWizz. These
forward-looking statements are based on Pandora's current
assumptions, expectations and beliefs and involve substantial risks
and uncertainties that may cause results, performance or
achievement to materially differ from those expressed or implied by
these forward-looking statements. Factors that could cause or
contribute to such differences include, the failure or delay in the
satisfying of closing conditions to the acquisition, difficulties
in integrating the AdsWizz business, and other uncertainties
associated with the acquisition of a new business, competitive
factors; our ability to manage our growth; and general economic
conditions worldwide. Further information on these factors and
other risks that may affect the business are included in filings
with the Securities and Exchange Commission (SEC) from time to
time, including our most recently filed Annual Report on Form 10-K,
particularly under the heading “Risk Factors.”
These documents are available online from the SEC or on the SEC
Filings section of the Investor Relations section of our website at
investor.pandora.com. Information on our website is not part of
this release. All forward-looking statements in this press release
are based on information currently available to Pandora, which
assumes no obligation to update these forward-looking statements in
light of new information or future events.
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version on businesswire.com: https://www.businesswire.com/news/home/20180321005390/en/
Pandora Public RelationsJette Speights,
415-385-8829jspeights@pandora.comorPandora Investor
RelationsDerrick Nueman, 510-858-3513dnueman@pandora.com
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