Stagwell, the advertising and marketing holding company, has acquired Freestar, a publisher monetization programmatic adtech company.
The deal brings Freestar’s technology and publisher relationships into Stagwell’s growing Media and Commerce business, which includes its media-buying, commerce, and owned-media operations. Freestar, meanwhile, gets access to Stagwell’s large, premium pool of advertisers.
Financial terms were not disclosed. (Maybe Stagwell got a deal?)
Why This Matters
Founded in 2015, Freestar helps publishers maximize advertising revenue through its proprietary pubOS ad-management platform and monetization services. Its clients include Fortune Media, Boston Globe Media and Enthusiast Gaming.
For Freestar, the acquisition represents an exit after more than a decade of building its publisher monetization business, along with access to more advertiser demand.
For Stagwell, the rationale is fairly straightforward: owning more of the technology connecting advertisers to publisher inventory, rather than relying entirely on third-party intermediaries. [Insert supply chain/direct path language here!]
Experts React
Ben Berentson, CEO of Owned Media at Stagwell, talked up the importance of supporting publishers:
“Freestar has built an exceptional global business helping publishers increase revenue and improve operational efficiency in a complex programmatic landscape. Together, we’ll continue investing in that mission while bringing new capabilities to support their growth and their clients’ success.”
Meanwhile, Kurt Donnell, CEO of Freestar, talked about the value of a clean supply path for both sides:
“The best outcomes happen when advertisers know exactly what they’re buying, and publishers are rewarded for the quality they deliver. Stagwell understands that. Joining them lets us offer publishers new capabilities, while staying true to the publisher-first approach that has always been our north star.”
Our Take
On paper, the deal makes sense for both sides. Freestar gets access to more (good) advertisers, while Stagwell gets more direct access to publisher inventory and the tech they need to monetize it.
But there’s an interesting potential conflict here, of course, Stagwell represents advertisers while now owning technology that helps publishers sell inventory. How does it balance those interests? And as the industry continues debating principal-based media buying and transparency, it’s fascinating to see agency holding companies respond by owning more of the technology that makes it possible.
Final thing: the M&A train rolls on.
