Categories Earnings, LATEST, Technology

AT&T buys AppNexus, will compete with Facebook and Google in digital ad space

Only a few days after getting the court’s green signal for the Time Warner deal, AT&T (T) has inked an agreement today to buy ad platform AppNexus. Last week, there were rumors going around that the telecom giant was having discussions on this potential acquisition with AppNexus. In an interview to CNBC last week, CEO Randall Stephenson said that the company is planning to acquire small companies in the digital ad space.

The New York-based internet tech firm will become a unit of AT&T advertising & analytics, one of the four business units of AT&T, which is led by Brian Lesser. Though the transaction value was not officially disclosed, a WSJ report estimates it to be around $1.6 billion. The deal is expected to close in the third quarter of 2018.

Related: Why the DoJ needs to appeal against the AT&T – Time Warner verdict

AppNexus, founded in 2007, had planned to go public last year but later dropped the idea. As per Crunchbase, the company led by Brian O’Kelly has raised $322 million so far through various rounds of funding. Also, AppNexus has acquired four companies in the years 2014 and 2015, including ALENTY, Real Media, MediaGlu and Yieldex.

AT&T acquires AppNexus

According to IAB Internet Advertising Revenue report, the global digital advertising market grew 21% year-over-year to $88 billion in 2017. Facebook (FB) and Google (GOOGL) jointly accounted for 90% of this growth, according to Pivotal Research analyst Brian Wieser. As per eMarketer’s report, worldwide digital ad spending of $232.3 billion (accounting for 39.7% of total media ad spending) is forecast to increase to $427.3 billion (accounting for 53.9% of total media ad spending) by 2022.

Related: A peek into AT&T – Time Warner Verdict

AT&T hopes this move will help them compete with rivals Facebook and Google in the digital ad space and the new platform will expand AT&T advertising and analytics’ footprint to regions like Latin America, Australia, Latin America and Europe. AT&T has over 170 million direct-to-consumer relationships across its wireless, video and broadband businesses.

The shares of the telecommunications company were trading flat before the bell and were up modestly during the morning trading session today.

Most Popular

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Three key factors that bode well for Tattooed Chef (TTCF) going forward

Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top