Ryan Reynolds’ MNTN seems to be benefiting from Walmart’s acquisition of Vibe.co.
The performance CTV company’s shares have climbed nearly 16% over the past few days, with most of the gains coming after Walmart announced it would buy competitor Vibe.co.
Why This Matters:
Investors are likely viewing the Walmart and Vibe.co deal as another sign that performance CTV is gaining momentum.
For years, CTV was viewed as a branding channel. That’s changing, obviously. Walmart is betting that easier activation, better measurement, and its commerce data can make streaming TV more attractive to performance marketers. Of course, that’s a strategy MNTN has also championed and banked on. (FWIW, at one point, MNTN and Vibe.co were butting heads pretty publicly.)
Some investors may also interpret the deal as a predictor of more M&A in performance CTV. With reports that Walmart agreed to pay $1.4 billion for Vibe.co, MNTN’s $700+ million market cap may now look compelling to potential acquirers.
Experts React:
Some good context here from The Information:
Our Take:
Performance CTV is quickly becoming an M&A story as investors are pondering who’s next. Please excuse the brevity of this post as we’re currently trying to build a performance CTV startup to cash in, too. (Just kidding… maybe?)
