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AT & T
Inc.
T 0.28%
announced Monday the acquisition of the advertising technology company AppNexus, an agreement that could help the telecoms giant capitalize on the multimedia content that he added through his purchase of Time Warner Inc. and give him more typing power to take Google and
for digital advertising dollars.
The terms of the agreement have not been disclosed. The Wall Street Journal reported last week that AT & T was paying about $ 1.6 billion, according to people close to the record.
AppNexus offers technology that helps advertisers buy ads, using automated software, on a range of websites and apps. The company also provides technology to publishers so that they can manage and sell advertising space on their websites. Its market, which connects both buyers and sellers of ads, extends to the video and web-connected television space.
In a press release, AT & T said it hoped the proposed acquisition will strengthen its position in advanced television advertising.
"Ad Tech combines real-time analytics and technology with our premium TV and video content," he said.
Brian Lesser,
CEO of AT & T's Advertising and Analysis Group. "So, we went out and found the strongest player in the space."
Several Madison Avenue executives have given a boost to the transaction after reports were released, predicting that it could offer them more choice in the digital advertising market.
Google took a 31.7 percent share of the $ 232.27 billion spent worldwide in digital advertising last year, according to eMarketer, while Facebook took a 17.9 percent share .
After the first reports on AT & T's participation in AppNexus, questions arose in the advertising industry as to whether the telecom firm would seek to maintain AppNexus' services for publishers third party or use its technology only to monetize its own content.
A person familiar with the issue says that this market will remain, giving AT & T access to global advertisers and appNexus publishers customers and will expand its presence beyond the United States.
At the close of Time Warner's deal earlier this month, AT & T restructured the merged company into four units, including an advertising and analysis division. Mr. Lesser, who was on the AppNexus board, is attached to
WPP
The GroupM PLC media buying unit to oversee these operations.
AT & T was sidelined from doing business while its acquisition of Time Warner was delayed by a lawsuit filed by the United States Department of Justice. AT & T prevailed in court earlier this month.
News Corp, the parent company of The Wall Street Journal, is an investor in AppNexus, alongside others, including WPP and the TCV investment company. AppNexus was valued at $ 1.8 billion as part of a 2015 funding cycle.
Write to Lara O'Reilly at lara.o [email protected]
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