Categories Earnings, Technology

Microsoft acquires advertising startup PromoteIQ for undisclosed amount

microsoft stock
Photo Courtesy: Microsoft

Microsoft Corporation (NASDAQ: MSFT) Monday acquired PromoteIQ, a provider of technology for publishing advertisements on e-commerce websites. The tech giant is yet to reveal the financial terms of the deal, which is part of its efforts to give stiff competition to Amazon (AMZN) in the public cloud space.

The deal will help Microsoft ramp up its retail advertising offerings. After integration, PromoteIQ will become a unit under Microsoft Advertising, while retaining the brand name. It is expected that PromoteIQ’s current offerings will get a major boost in the coming months when the various technologies of Microsoft, including artificial intelligence and machine learning, are integrated into it.

Also see: Amazon Q2 2019 Earnings Conference Call Transcript

The solutions to be offered by the companies will help retailers innovate their digital platforms extensively. In the last fiscal year, advertising accounted for about 10% of Microsoft’s total revenues. Recently, the company separated the Bing Ads brand from its online advertising business and renamed it as Microsoft Advertising.

“We greatly admire the work PromoteIQ has done and couldn’t be more excited about this acquisition’s potential to empower global retailers and brands, accelerate PromoteIQ’s growth and expand Microsoft Advertising’s reach and scale,” said Rik van der Kooi, corporate vice-president of Microsoft Advertising.

Related: Microsoft Q4 2019 Earnings Conference Call Transcript

PromoteIQ’s parent Spotfront was established about seven years ago and is based in New York. It has associated with some of the leading retailers, including Office Depot (ODP) and Kroger (KR).

For the fourth quarter, Microsoft reported a double-digit increase in earnings and revenues, helped by broad-based growth across all the business segments. Last month, the company’s shares reached a new peak, after gaining steadily since the beginning of the year. The stock traded sharply lower during Monday’s regular session.

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000


Add Comment
Viewing Highlight