Adobe announced today that they have agreed to acquire TubeMogul – an online video and programmatic TV advertising platform that focuses on the buy-side – in a deal valued at about $540 million net of debt and cash. Adobe will pay $14 per TubeMogul share and expects to close the deal in the first quarter of 2017. The move will give Adobe a much stronger hand on the buy-side and will complement its sell-side stack, known as Adobe Primetime, which it has been building since the company acquired Auditude in 2011.
“Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs,” said Brad Rencher, executive vice president and general manager, digital marketing, at Adobe.
Writing on the TubeMogul blog, TubeMogul CEO Brett Wilson said, “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.”
Wilson also set out to allay client fears about the loss of independence, “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.”