T-Mobile to acquire Vistar Media for $600M
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A T-Mobile store in New York. Photo: Gabby Jones/Bloomberg via Getty Images
T-Mobile has agreed to acquire Vistar Media, an ad tech firm specializing in digital out-of-home, for $600 million, the companies announced on Monday.
Why it matters: The all-cash deal supports the telecom's growing ad business as it seeks to generate revenue beyond phone and internet plans.
Zoom in: T-Mobile said the deal combines Vistar's tech capabilities and scale with its customer insights and data. New York-based Vistar supports buying, selling and managing OOH campaigns. OOH is expected to grow 7.1% year to $56.1 billion in 2025, per GroupM's year-end forecast.
- Vistar's network of more than 1.1 million digital screens includes displays in Times Square and other high-trafficked areas along with screens in concert venues, offices, gyms, airports and more. Vistar has worked with about 370 OOH media owners and more than 3,000 advertisers.
- Vistar's backers include Lamar Advertising and Ben Franklin Technology Partners of Southeastern Pennsylvania. The deal is expected to close first quarter of 2025, subject to regulatory approvals.
- Allen & Company served as financial adviser and Cleary Gottlieb Steen & Hamilton as legal counsel to T-Mobile. Canaccord Genuity advised Vistar Media with Lowenstein Sandler as its legal counsel.
Zoom out: T-Mobile has been investing in its ad business even as its competitors pull out and sell their media and ad tech assets.
- In 2022, T-Mobile acquired Octopus Interactive, a startup that managed ad-supported tablets in rideshare vehicles.
- Last year, T-Mobile launched a retail media network for its more than 20,000 in-store screens. It also sells ads in its loyalty app, T Life, and partnered with ad-supported streamer Plex.
What they're saying: "T-Mobile is always envisioning new ways to deliver for consumers and we see a tremendous opportunity to provide more relevant and personalized advertising," JP Colaco, senior vice president and chief T-Ads officer for T-Mobile, said in a statement.
- "For 13 years, Vistar has pioneered using technology and data to transform OOH into a strategic and measurable channel. T-Mobile's belief in the future of OOH — and their decision to acquire Vistar — underscores
the strength of this channel," Vistar Media CEO Michael Provenzano said in a statement.
What we're watching: The deal is another boost to OOH's digital transformation as more billboards convert from static media to screens. GroupM expects digital to account for 42% of OOH ad revenue in 2025.
