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Magnite Set To Acquire SpotX In $1.17B Deal To Create Largest Independent Video Advertising Platform

· 02/05/2021 09:02
  • Magnite Inc (NASDAQ: MGNIis acquiring global video ad serving platform SpotX from RTL Group for a $1.17 billion purchase price to become a powerful CTV and video advertising platform.
  • The purchase price includes $560 million in cash, 14 million shares, and debt financing from Goldman Sachs.
  • The transaction is estimated to close by the second quarter of 2021, subject to approvals and conditions.
  • “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,” said Magnite CEO Michael Barrett.
  • The acquisition will enable Magnite and SpotX to cater to the global programmers, broadcasters, platforms, and device manufacturers, like A+E Networks, Crackle Plus, The CW Network, Discovery, Disney/Hulu, Electronic Arts, Fox Corporation, fuboTV, Microsoft, Newsy, Philo TV, Pluto TV, Roku, Samsung, Sling TV, Tubi, ViacomCBS, Vizio, Vudu, WarnerMedia and Xumo.
  • Magnite expects $35 million in cost synergies, with the realization of over 50% of the synergies within the first year of consolidated operations.
  • Magnite’s preliminary results for the fourth quarter of FY20 include a 20% year-on-year revenue growth on a proforma basis to $82 million with CTV revenue growth of 53% to $15.3 million. Net income stands at $5.8 million.
  • Price action: MGNI shares are up 22.3% at $53.17 in the pre-market session on the last check Friday.