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

Infographic: Key highlights from Campbell Soup Company’s (CPB) Q1 2023 earnings results

Campbell Soup Company (NYSE: CPB) reported first quarter 2023 earnings results today. Net sales increased 15% year-over-year to $2.57 billion. Organic sales growth was 15%. Net earnings attributable to Campbell Soup

Cancer drug maker Felicitex prepares for IPO. Here’s all you need to know

Fewer companies filed for initial public offering this year, compared to 2021 when the market witnessed a record number of IPOs. With only a few weeks left for the year

Chipotle Mexican Grill (CMG): A few points to keep in mind if you have an eye on this restaurant chain

Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) were down 3% on Tuesday. The stock has dropped 13% year-to-date but there is still a positive sentiment in general about its

Tags

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