Advertising platform Magnite has announced the acquisition of SpotX from RTL in a deal worth $1,17 billion.
The purchase price comprises $560 million in cash and 14 million shares of Magnite stock.
According to Magnite, the deal will create the largest independent CTV and video advertising platform in the programmatic marketplace, serving some of the world’s leading programmers, broadcasters, platforms and device manufacturers, including Discovery, Disney/Hulu, Roku, Samsung, Sling TV, ViacomCBS, Vizio, and WarnerMedia.
The transaction is expected to close in the second quarter of 2021, subject to receipt of regulatory approvals and satisfaction of customary closing conditions. Until the transaction closes, both companies will continue to operate independently.
“Sellers have been looking for a scaled independent alternative to the giant companies who dominate the CTV marketplace,” said Michael Barrett, president & 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.”