The US based, one of the leading online video advertising service America Online (AOL) has recently acquired Amir Ashkanazi’s Adap.tv, reports TechCrunch. The deal will be done partly in cash with $322 million and partly in stock worth $83 million, making it a total of $405 million. It is expected to get close by September this year.
Post acquisition, Adap.tv will operate as an independent entity under the leadership of senior vice president Ran Harnevo and CEO Tim Strong.
Founded in 2007 by Amir Ashkanazi, Adap.tv is known for changing the video advertising world. It is a unified, programmatic platform that provides buyers and sellers with automated tools to plan, buy and measure across linear TV and online video. It claims to nearly triple its revenue to $100 million in 2012.
Currently, Adap.tv is headquartered in San Mateo, California and has offices in Chicago, Los Angeles and New York, and international offices in Australia, India and London. The company is backed by investors such as Bessemer Venture Partners, Gemini Israel Funds, Redpoint Ventures and Spark Capital with total $48.6 million funding raised.
As per the reports, earlier in July, AOL had made an offer of about $400 million for the company. AOL ‘s major revenue source is its banner ad business, catering to the real time advertising needs of the advertisers. The deal with adap.tv, thus makes sense as it will help AOL expand its business further in advertising segment.
“The Adap.tv founders and team are on a mission to make advertising as easy as e-commerce, and the two companies together will aggressively pursue that vision,” said Tim.
As per Tim, the $240 billion industry in the TV advertising business will move from TV to [Internet] -delivered video over the next decade, making advertising to bought more like eCommerce. He also predicts that Adap.tv in future could take place of Google ads with search.
AOL’s other major acquisitions include TechCrunch in 2010 and The Huffington Post in 2007.