Business

AT&T Confirms Acquisition of AppNexus, for Reportedly Between $1.6B and $2B

Even though AT&T could have initiated this project from the ground, this would mean spearing down some bolts mainly on the IP addresses and nearly 400 to 500 engineers. Also, this would thereby exclude the existence of a new business to the already existing company.

According to AT&T, it stated that “as an investment company, we will and shall continue to build on and invest in AppNexus’ technology foundation as the company is side by side integrated with AT&T first and third party data, content and premium video distribution.”

AT&T continued saying that, “innovation is the strongest core to the heritage of both companies i.e. AT&T and AppNexus, and also we are excited to have an opportunity to future chart advertising course together,” said Brian O’Kelly the CEO of AppNexus.

In another statement, and I quote “combining our incredible asset with AT&T incredible technologies will extensively help marketers power and brands in their new advertising experience with their consumers. This is actually what the consumers are asking for and together we poise in delivering it.

Since 2 years ago, AppNexus has come from a long prepping for a formal IPO. The companies advertising technology was viewed as the next hottest tech which was set to go public. This was until the company’s IPO plans changed. As we speak, AT&T is talking on acquiring AppNexus for $1.6B to $2B according to Wall Street Journal.

AppNexus, on the other hand, operates on one of the greatest automated marketplace advertisement. Which allows consumers and customers to initially target their willing and ideal audience and more so purchase website space which they basically use in the targeting process.

According to the AppNexus companies CEO, selling of this company to AT&T makes sense. As a BI reported, all existing AD tech firms which initially went viral and public like Criteo and others like Rubicon have had their value slide in the most recent years.

According to AT&T, it has been a large AppNexus customer hence buying the company would not only add value but also give AT&T a strong and firm foothold in the digital world and more so in competing with bigger companies like google and yahoo. Also, this would provide revenue and cut offset losses in people by moving from traditional TV to digital packages.

Let’s say a new deal is to be announced this week. Then the AT&T would notify days just after it won the court approval at $85B on purchasing the Time Warner.

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No A News Week journalist was involved in the writing and production of this article.

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