AT&T Inc. (NYSE: T) on Monday announced to acquire AppNexus, an advertising technology company that provides enterprise products for digital advertising – serving publishers, agencies and marketers.
The company didn’t disclose how much they pay for the acquisition. According to a report from The Wall Street Journal last week, AT&T is expected to pay $1.6 billion for the deal.
According to the press release, AT&T expected the deal will help strengthen its leadership in advanced TV advertising. The acquisition will also expand AT&T advertising and analytics’ footprint into Asia-Pacific, Australia, Europe, and Latin America.
“Ad tech unites real-time analytics and technology with our premium TV and video content,” said Lesser. “So, we went out and found the strongest player in the space. AppNexus has scale of infrastructure, advanced technology and diverse talent. The combination of AT&T advertising & analytics and AppNexus will help deliver a world-class advertising platform that provides brands and publishers a new and innovative way to reach consumers in the marketplace today.”
According to eMarketer, Google and Facebook accounted for nearly 50 percent of the digital advertising market share last year. The deal may help the telecom company to better compete with tech giants.
The transaction is expected to close during the third quarter of 2018 and each company will operate independently.