The price is undisclosed, but should be substantial: LiveRail was on a $100M/year run rate last fall on the back of 300% Y/Y revenue growth, and was eying a possible 2H14 IPO. The startup serves 7B video ads/month, and is part of a burgeoning market for programmatic (automated/algorithm-driven) video ad platforms.
Rivals include Google's DoubleClick unit, AOL's Adap.tv unit, Tremor Video, (TRMR -2.5%), and YuMe (YUME -0.3%). LiveRail has argued its publisher-centric approach sets it apart. "We've reached a point where the market is larger, more mature and more competitive. You need to be the best at one thing in order to differentiate."
Facebook: "We believe that LiveRail’s excellent product ... and Facebook’s expertise with relevancy, delivery and measurement will help us make video advertising much better for everyone." The company is just months removed from launching its news feed video ad product.
Facebook shares have slipped following the announcement, as have Tremor's.
Earlier: Facebook roundup