Adobe Systems Purchased Ad Tech Company TubeMogul

By Inah Mallare | Nov 11, 2016 12:23 PM EST

TEXT SIZE    

Adobe Systems has purchased TubeMogul for $540 million as announced on Thursday. The ad tech company has sold all its shares to the tech giant.

The recently purchased ad tech company specialized in video advertising, as well as provided advertisers with a demand-side platform to plan, buy and measure the said ads by utilizing an automated system. 

TubeMogul's common stock has been purchased by Adobe Systems for $14 per share, amounting to $540 million, net of debt and cash. Looking back in 2014, TubeMogu went public and had stock listings at $7 per share. Moreover, its stock was at the same amount when it was purchased by Adobe Systems.

Adobe Systems will incorporate the newly acquired company with their marketing cloud business. It is worth mentioning that Adobe is already building its ad tech stock in the name of its Media Optimizer product. 

An interesting statement was shared by Adobe's executive vice president and general manager or digital marketing Brad Rencher. Rencher said in a statement "Whether it's episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeball." He said. " 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." 

Prior to the announcement of the acquisition between the two tech companies, TubeMogul announced their third-quarter results. It was reported that the revenue of the said company grew 21 percent to $56.1 million. According to TubeMogul, the brand advertisers have put them in a strong position to win their ad spend which is "increasingly looking to consolidate their spend on a single platform,"  

However, their losses also increased from $3.75 million to $12.4 million in the third quarter of 2015. The letter sent to the company's clients and partners by TubeMogul CEO Brett Wilson can be found below:

"I'm thrilled to share the news that TubeMogul has entered into a definitive agreement to be acquired by Adobe Systems.

I want to thank our clients, shareholders, team and partners for your invaluable contributions in getting us to this point. Together, we accomplished a lot. You helped us break down barriers where others saw walled gardens. You helped us launch the first solution for automated, data-driven buying of linear TV ads. You helped us draw attention to misaligned incentives in the market. And you gave us confidence to automatically offer refunds to platform clients for non-human traffic.

We believe this is a great move for our shareholders, team and - especially - our clients. Adobe and TubeMogul will provide a unified advertising and data management solution that enables brands to precisely identify the right segments and plan, execute and measure paid media across any device.

This will be the industry's first independent end-to-end video advertising platform. Current TubeMogul clients can envision a future where first-party data and measurement from Audience Manager and Adobe Analytics is available directly in TubeMogul's platform - a combined data and buying dynamo that spans TV and digital formats.

Of course, TubeMogul has long been known for independence and many of you partnered with us due to our buy-side, media-agnostic approach. What's especially exciting about this acquisition is that it actually deepens that commitment.

A combined Adobe and TubeMogul is uniquely aligned with advertisers. Once integrated, this will enable brands and agencies to plan, buy, measure and optimize their global video advertising with a neutral, independent partner that doesn't have direct ownership of media or content. Our combined incentive is to arm marketers with insights on what's working - and act on it.

Beyond strategy and product fit, I'm incredibly proud to call Adobe home because we share similar values and corporate cultures. Both companies have a track record of innovating marketing and advertising through software (in Adobe's case, dating back decades). Both companies invest in building a culture of doers. And both companies are driving transparency in the industry.

Openness is also a common value. We expect to continue taking an open approach with new integrations, with new partnerships assessed based on marketer demand.

Our commitment to our clients, team and partners is stronger than ever. With Adobe, we can realize our mission to make advertising simpler and more accountable in bigger and more profound ways.

As always, we're here to honestly answer your questions and arm you for success.

Thanks, 
Brett Wilson, CEO and co-founder of TubeMogul"


pre post  |  next post
More Sections