AT&T to Acquire Digital Ad Firm AppNexus for $1.6 Billion

By Lara O'Reilly 

AT&T Inc. said Monday it has agreed to acquire advertising technology company AppNexus, a deal that could help the telecom giant capitalize on the media content it added through its purchase of Time Warner Inc. and give it more firepower to take on Google and Facebook for digital advertising dollars.

The Wall Street Journal earlier reported the deal is valued at about $1.6 billion.

AppNexus offers technology that helps advertisers buy ads, using automated software, across a range of websites and apps. The company also supplies technology to publishers so they can manage and sell ad space on their websites. Its marketplace, which connects both the buyers and sellers of ads, extends into the video and web-connected television space.

In a press release, AT&T said it hopes the proposed acquisition will strengthen its position in advanced television advertising.

"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."

Several Madison Avenue executives gave a thumbs-up to the deal after reports it was in the works surfaced, predicting it could offer them more choice in the digital ad market.

Google took a 31.7% share of the $232.27 billion spent globally on digital advertising last year, according to eMarketer, while Facebook took a 17.9% share. Their market share in the U.S. is even higher.

(END) Dow Jones Newswires

June 25, 2018 08:36 ET (12:36 GMT)

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