AT&T to Acquire Digital Ad Firm AppNexus for $1.6 Billion
June 25 2018 - 8:51AM
Dow Jones News
By Lara O'Reilly
AT&T Inc. said Monday it has agreed to acquire advertising
technology company AppNexus, a deal that could help the telecom
giant capitalize on the media content it added through its purchase
of Time Warner Inc. and give it more firepower to take on Google
and Facebook for digital advertising dollars.
The Wall Street Journal earlier reported the deal is valued at
about $1.6 billion.
AppNexus offers technology that helps advertisers buy ads, using
automated software, across a range of websites and apps. The
company also supplies technology to publishers so they can manage
and sell ad space on their websites. Its marketplace, which
connects both the buyers and sellers of ads, extends into the video
and web-connected television space.
In a press release, AT&T said it hopes the proposed
acquisition will strengthen its position in advanced television
advertising.
"Ad tech unites real-time analytics and technology with our
premium TV and video content," said Brian Lesser, CEO of AT&T's
advertising and analytics group. "So, we went out and found the
strongest player in the space."
Several Madison Avenue executives gave a thumbs-up to the deal
after reports it was in the works surfaced, predicting it could
offer them more choice in the digital ad market.
Google took a 31.7% share of the $232.27 billion spent globally
on digital advertising last year, according to eMarketer, while
Facebook took a 17.9% share. Their market share in the U.S. is even
higher.
(END) Dow Jones Newswires
June 25, 2018 08:36 ET (12:36 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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