Magnite, the rolled up Rubicon Project and Telaria SSP, today announced that it will buy SpotX from RTL Group for $1.17 billion, with $560 million in cash and 14 million shares of Magnite stock. SpotX is one of the industry’s top video and CTV ad platforms.
According to the acquisition press release, the union of Magnite and SpotX “will create the largest independent CTV and video advertising platform in the programmatic marketplace” for CTV sellers, while making it easier for agencies and brands to access CTV inventory at scale.
“Sellers have been looking for a scaled independent alternative to the giant companies who dominate the CTV marketplace,” said Michael Barrett, President and 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.”
“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,” said Mike Shehan, Co-Founder and CEO at SpotX. “We built SpotX with the mission of becoming the leading global video advertising platform, and our goal is now coming to fruition with Magnite. I am thrilled about what we will achieve together.”
RTL Group’s CEO Thomas Rabe also commented on the deal: “We are excited about the combination of SpotX and Magnite, two leading CTV advertising providers. This transaction allows for significant value creation and upside potential for the parties, sellers and advertisers in the growing CTV market. We look forward to participating in the future success of SpotX and Magnite as shareholders in the combined entity.”
Ultimately, SpotX will be integrated into Magnite, though the companies will remain separate for now.
In a blog post, Magnite’s Barrett explains the decision: “We want SpotX’s clients and partners to know that we’re committed to supporting them and serving their needs with minimal disruption after the deal closes. In the meantime, Magnite and SpotX will remain separate, and both companies will continue to operate independently.”
Simulmedia’s Dave Morgan called the acquisition a “smart move” for Magnite, allowing the company to “consolidate the strongest current position within sell-side platforms in CTV.”
Meanwhile, Alex Cone, Senior Product Director at IAB Tech Lab raises a good question, wondering “if all the supply plugged in to SpotX stays. Particularly RTL supply.” Germany’s RTL is a leader in European broadcast, content and digital, with interests in 68 television channels, ten streaming platforms and 31 radio stations. The company took full ownership of SpotX in 2017 after investing in 2014.
In aggregate, Magnite and SpotX clients include a number of top broadcasters and content companies, ranging from A+E Networks and Disney/Hulu to Roku and ViacomCBS.
The deal is expected to close in the second quarter of 2021.
