Magnite signs US$1.17 bn deal to buy SpotX
Sell-side advertising platform Magnite has today entered into a definitive agreement to acquire SpotX from RTL Group for US$1.17 billion in cash and stock. SpotX is one of the leading platforms for CTV and video advertising globally.
Magnite plans to finance the transaction with cash on hand, 14 million shares issued to RTL Group and committed financing from Goldman Sachs.
Together, Magnite and SpotX will become the largest independent CTV and video advertising platform in the programmatic marketplace. The combined company will add competition to the CTV advertising market according to the announcement.
“Sellers have been looking for a scaled independent alternative to the giant companies who dominate the CTV marketplace,” said Magnite president and CEO Michael Barrett. “The combination of Magnite and SpotX will make this a reality by bringing together the best CTV technologies and teams at a critical time. Ad-supported CTV is just beginning to draw budgets from linear TV and we will be well-positioned to participate in the strongest segment of industry growth for the foreseeable future.”
SpotX co-founder and CEO, Mike Shehan, added: “As CTV flourishes and the media industry continues to turn to programmatic, there is a huge opportunity for an independent scaled company to offer the single most comprehensive technology in the market.”
Together, Magnite and SpotX will serve some of the world’s leading programmers, broadcasters, platforms and device manufacturers, including A+E Networks, Crackle Plus, Discovery, Disney/Hulu, Fox Corporation, FuboTV, Microsoft, Newsy, Pluto TV, Roku, Samsung, Sling TV, Tubi, ViacomCBS, Vizio, Vudu, WarnerMedia and Xumo.
Magnite is forecasting in excess of US$35 million in run-rate operating cost synergies, from the deal with more than half of the synergies realised within the first year of combined operations.
The company expects the transaction to close in the second quarter of 2021, subject to receipt of regulatory approvals and satisfaction of customary closing conditions. Until the transaction closes, both companies will continue to operate independently.
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Olivia Kruimel is the managing editor at Mumbrella. She has more than 15 years of experience in journalism, communications and marketing. Her journalism career began at Fairfax Media (now part of Nine) and includes various B2B publications such as B&T, Travel Today and ALB. As a marketer Olivia has worked for Standard Chartered and various global law firms.
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