AOL Inc. (NYSE: AOL) today announced the acquisition of video advertising platform Adap.tv Inc. for $405 million, including $322 million in cash and $83 million in AOL shares. Adap.tv will operate independently as part of AOL’s video organization and it will be part of the overall solution offered by AOL Networks to its publisher and advertiser partners.
"AOL is a leader in online video and the combination of AOL and Adap.tv will create the leading video platform in the industry," said AOL chairman and CEO Tim Armstrong. "The Adap.tv founders and team are on a mission to make advertising as easy as e-commerce and the two companies together will aggressively pursue that vision." He added, “Two trends are prevalent in the video space right now - the movement from linear television to online video and the shift from manual transactions to programmatic media buying. Adap.tv is positioned squarely in front of the huge opportunity these trends are presenting."
This is AOL's biggest acquisition since Armstrong took over the company in 2009. His previous big deal was the acquisition of online news site "Huffington Post" for $315 million in 2009.
“At Adap.tv, we are focused on building the most important business within the most important category in digital advertising,” said Adap.tv CEO Amir Ashkenazi, “We believe that most TV advertising will soon be traded programmatically on platforms like ours. The combination of AOL and Adap.tv accelerates our vision of efficient and effective TV and video advertising."
The San Mateo, California-based company has Israeli roots. It was founded by Ashkenazi, Dan Klein and CPO Teg Grenager in 2006, and investors include Gemini Israel Ventures, as well as US funds Redpoint Ventures, Spark Capital, and Bessemer Venture Partners.
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2013
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