Adobe buys demand-side platform TubeMogul to strengthen Marketing Cloud’s programmatic advertising capabilities
Adobe has announced an agreement to acquire TubeMogul for $540 million.
TubeMogul shares have soared after the announcement of an agreement in which the demand-side platform (DSP) will be acquired by Adobe for US$540 million net of debt and cash. After the announcement, TubeMogul shares surged 81.75% to US$13.94, CNBC reports.
Under the terms of the agreement, Adobe will commence a cash tender offer to acquire all of the outstanding common stock of TubeMogul for US$14 per share.
In a release, Adobe says its acquisition of TubeMogul will create the first end-to-end independent advertising and data management solution that will span TV and digital formats, aiming to simplify what has been a “complex and fragmented process for the world’s biggest brands.”
The transaction is expected to close during the first quarter of Adobe’s 2017 fiscal year.
“Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every devide and brands are following those eyeballs,” says Brad Rencher, executive vice president and general manager, digital marketing at Adobe. “With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertising, providing even more strategic value for our Adobe Marketing Cloud customers.”
Joint customers of Adobe and TubeMogul already include brands such as Allstate, Johnson and Johnson, Kraft, Liberty Mutual, L’Oreal and Nickelodeon.
“Adobe and TubeMogul share a similar culture and vision for the future of advertising,” says Brett Wilson, CEO and co-founder, TubeMogul. “The combination of Adobe Marketing Cloud with TubeMogul’s software creates a uniquely comprehensive platform that will help marketers always know what’s working.
“We’re thrilled to call Adobe home and believe this will be a great move for our clients, team and shareholders.”
Brett Wilson will continue to lead the TubeMogul organisation as part of Adobe’s digital marketing business. There is no information yet on how the acquisition will affect TubeMogul’s Australian operations, led by Sam Smith.
Image copyright: kritchanut / 123RF Stock Photo