AT&T is buying ad platform AppNexus for at least $1.6B
The world' largest independent digital ad exchange 🤑
Posted on June 25, 2018 4:50 PM.
TechCrunchIngrid Lunden
Today, AT&T confirmed that it is buying AppNexus, a programmatic advertising marketplace that competes against the likes of Google and Facebookand describes itself as the world’s largest independent digital ad exchange.
While AT&T didn't comment on the financial terms of the deal, rumors around a $1.6B to $2B deal were reported last week. AppNexus had filed for an IPO in November, which valued the company between $1.5B and $2B, but the deal never went through. This news of another large acquisition comes just after AT&T closed its deal to acquire Time Warner Cable for $85B.
Now that AT&T has a mobile network, access to video and entertainment content, and an ad platform, they can begin to leverage their new acquisition of AppNexus monetize the content.
“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.”
The acquisition also helps AT&T compete against bigger players in the advertising space, like Alphabet's Google, and Facebook.
ReutersSonam Rai
“Think of this as buying a sofa to furnish the new house (Time Warner) they just bought,” said Moffett Nathanson analyst Craig Moffett, adding that AppNexus will add muscle to AT&T’s strategy of making its ads more targeted.
A person familiar with the matter says this marketplace will remain, which gives AT&T access to AppNexus’s global advertiser and publisher clients and will expand its presence beyond the U.S.
The acquisition is expected to close in the third quarter of 2018.

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