The Rubicon Project, Inc.NYSE
The Rubicon Project: A Gem Mispriced In The Ad-Tech Space
Alpha Gen Capital
Alpha Gen Capital
Fri, Jan. 29, 7:03 PM
- Video ad specialist Adaptive Medias (OTCQB:ADTM -8.6%) has received an acquisition bid, Barron's reports, from private AdSupply, with whom it entered a strategic partnership last week.
- AdSupply has offered $35M -- about $1.50 a share, a ten-bagger premium over the current price of $0.144 -- in a letter to Adaptive's board.
- The company will form a committee to review the deal and Adaptive CEO John Strong says they'll do their fiduciary duty to check all options.
- AdSupply chief Justin Bunnell said companies in the ad-tech space (particularly sometime candidates Rubicon Project (NYSE:RUBI), Rocket Fuel (NASDAQ:FUEL) and Criteo (NASDAQ:CRTO)) should be ready for what might be a wave of acquisitions with stock prices lower than before and "as companies prepare for the next round of competition."
- Previously: Adaptive Medias in marketplace partnership with AdSupply (Jan. 21 2016)
Apr. 27, 2015, 10:01 AM
- Rubicon Project (RUBI +1.8%) says it's completed its acquisition of Canadian "intent marketing" firm Chango.
- The firm says the deal allows Rubicon's premium customer base to access an incremental $35B of intent marketing spend.
- The two companies entered into an acquisition deal for about $122M (mostly in stock) late last month.
Mar. 31, 2015, 4:17 PM
- Ad-tech firm Rubicon Project (NYSE:RUBI) says it will acquire "intent marketing" technology provider Chango for about $122M, mostly stock.
- The firm says that deal will let it expand its premium offerings with keyword, contextual targeting and retargeting budgets and give it access to an additional $35B of intent marketing spend.
- It also will accelerate Rubicon's Buyer Cloud business, "advancing our technology roadmap and team build-out by more than one year," says Rubicon CEO Frank Addante.
- Chango processes 1T pageviews/month and billions of search events from leading search engines.
- Rubicon Project reaffirmed its Q1 outlook and set a conference call to discuss the Chango acquisition for 5 p.m. ET today.
- Rubicon shares are up 1% after hours.
Jan. 10, 2015, 4:37 PM
- The number of M&A deals involving "advertising technology and services" rose 32% Y/Y in 2014 to 100, per data compiled by i-bank Coady Diemar. The dollar value of transactions more than tripled to $7.5B. Notable deals: Yahoo/BrightRoll, Facebook/LiveRail, Oracle/Datalogix, Acxiom/LiveRamp.
- The consolidation wave isn't expected to let up in 2015, given a widespread belief there are far too many independent players competing in a market where bigger Internet names such as Google, Facebook, Yahoo, AOL, and Twitter also play prominent roles.
- "I don’t know what the right number [of companies] is, but it’s probably less than 10," says Luma Partners' Terence Kawaja, citing Google/Facebook's share gains. Coady's Colin Knudsen argues the services of ad tech firms focused on one particular offering are typically more expensive, and that "only the best will be sustainable as standalone entities over time."
- Online ad tech plays: FUEL, TRMR, YUME, TUBE, SZMK, RUBI, ACXM, MRIN, CRTO.