Adtech IPOs are back, baby. Or will be soon.
Bloomberg is reporting that MNTN, the CTV adtech company that has Ryan Reynolds as its chief creative officer, has tapped Morgan Stanley for a potential IPO as early as 2025. Details are still being worked out, and more banks could join. No one is commenting, however.
Why This Matters:
MNTN provides tech for advertising on connected TVs. Their main platform and focus is “Performance TV,” highlighting that CTV allows brands to use TV ads to drive measurable results like website visits and sales. The company uses AI to personalize ads and choose ad placements based on viewer behavior for auto-optimization.
A few years ago, MNTN raised $119 million in a Series D round, led by BlackRock and Fidelity. Around the same time, MNTN also bought creative agency Maximum Effort, which was founded by actor and entrepreneur Ryan Reynolds. Terms of that deal weren’t disclosed but based on the budget for Deadpool and Wolverine, we think he made out OK.
Experts React:
It’s not every day we get to quote Ryan Reynolds, so here he is talking about MNTN in the Maximum Effort acquisition press release.
“We wanted a future for our marketing arm that ensured we could continue to move fast, have fun and do really rewarding work. I was blown away by the simplicity and speed of MNTN’s technology and how it opens up access to TV for advertisers who can’t afford upfront agreements. I believe the combination of our companies will create a 1+1 equals 3 situation, assuming my math checks out. It was never my strong suit.”
Our Take:
MNTN is focused on two key areas, in our view, that are incredibly important and potentially attractive as a public company. First, the shift to CTV buying is ongoing, and their platform is focused on performance, which is essential as more dollars flow to CTV. At some point, to justify the spend, proof of performance becomes critical.
Secondly, the company is focused on democratizing CTV ad buying for smaller advertisers. For example, they have a dedicated SMB section on their website. “Our intuitive, self-serve software transforms Connected TV advertising into a targetable, measurable, and scalable performance channel,” it states. The self-serve model, with no contracts or commitments, helps lower barriers to entry.
In some ways, this reminds us of Roku Ad Manager, which also focused on democratizing CTV buying. SMB spending is inevitable and will eventually dominate, as we’ve seen with social and search.
