Magnite said it closed its acquisition of SpotX from RTL Group.
The purchase price was about $1.14 billion, including $640 million in cash and 12.4 million shares of Magnite stock.
Magnite said the acquisition creates an alternative marketplace for connected TV advertising inventory at a time when more marketers are looking over-the-top to reach viewers who have cut the cord with traditional pay TV.
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“Scale and reaching the largest possible audience is the name of the game when attracting the demand our CTV and video clients need,” said Michael Barrett, president & CEO of Magnite. “Acquiring SpotX positions us to become the world’s largest, independent source of highly-coveted CTV and video inventory. Two-thirds of our revenue is now concentrated in the fastest-growing segments of the market, and as linear TV dollars move to CTV, the greatest opportunity is still ahead of us.”
The combined company’s clients now include A+E Networks, AMC Networks, Crackle, Discovery, FOX, fuboTV, LG, Roku, Samsung, Sling TV and Vizio.
Magnite expects to wring out $35 million in run-rate operation cost synergies after combining the two companies’ operations.
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
