Magnite to acquire SpotX
Magnite will pay RTL Group $560 million in cash and 14 million shares of Magnite stock.
Magnite this month announced the acquisition of SpotX, a video platform and programmatic video exchange, owned by RTL Group. Magnite says the deal creates the largest independent CTV and Video advertising platform.
Magnite will pay RTL Group $560 million in cash and 14 million shares of Magnite stock, for a total of $1.17 billion based on the closing price of Magnite stock as of February 4, 2021. A total of $1.17 billion.
SpotX total preliminary non-GAAP net revenue for 2020 was $116 million, of which $67 million was CTV.
“Sellers have been looking for a scaled independent alternative to the giant companies who dominate the CTV marketplace,” said Michael Barrett, President & CEO of Magnite. “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.”
Magnite says the combined companies will serve programmers, broadcasters, platforms, and device manufacturers, including A+E Networks, Crackle Plus, The CW Network, Discovery, Disney/Hulu, Electronic Arts, Fox Corporation, fuboTV, Microsoft, Newsy, Philo TV, Pluto TV, Roku, Samsung, Sling TV, Tubi, ViacomCBS, Vizio, Vudu, WarnerMedia, and Xumo.