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UPDATE 1-Advertising platform Magnite buys SpotX from RTL for $1.17 bln

· 02/05/2021 02:44
UPDATE 1-Advertising platform Magnite buys SpotX from RTL for $1.17 bln

- U.S. advertising platform Magnite MGNI.O has agreed to buy video advertising group SpotX from European broadcaster RTL Group RRTL.DE for $1.17 billion, it said on Friday, aiming to create a leading interactive advertising platform.

The purchase price comprises $560 million in cash and 14 million shares of Magnite stock, RTL said.

The combination of Magnite and SpotX will bring together the best CTV technologies and teams at a critical time, Magnite Chief Executive Michael Barrett in a statement.

CTV technologies integrate internet and interactive digital advertising services into smart TVs and receivers.

"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," Barrett said.

RTL Group acquired a 65% majority shareholding in SpotX for 107 million euros ($127.97 million) in 2014, and took full ownership of SpotX in 2017, acquiring the remaining shareholding for 123 million euros.

($1 = $1.0000)


(Reporting by Kirsti Knolle; Editing by Maria Sheahan)

((kirsti.knolle@thomsonreuters.com;))