Jun 25, 2018

AT&T to acquire ad tech firm AppNexus

Photo by Roberto Machado Noa/LightRocket/Getty Images

AT&T has announced it will acquire AppNexus, one of the largest privately-owned ad exchanges. Terms of the deal were not disclosed, but The Wall Street Journal reports that the price tag is around $1.6 billion.

Why it matters: The acquisition will help AT&T build its automated digital advertising business that could compete with Google and Facebook’s massive duopoly.

What is AppNexus? AppNexus is a digital ad exchange — or a company that uses technology to optimize automated advertising bidding across digital properties, like websites and apps. Its main competitors are other ad tech companies that experienced high periods of growth between 2011 and 2013, like PubMatic and Criteo.

  • "The fit was so good with the assets that AT&T has and has acquired," says venture capitalist and AppNexus director Mike Tyrrell, who adds that deal likely would not have happened had AT&T been unable to complete its purchase of Time Warner.

The backstory: There were reports last year that AppNexus, like some of its ad tech rivals, would go public. Many have instead sought buyers in a harsh ad tech landscape. Other tech companies, like Salesforce and Oracle, have recently invested in ad tech companies valued at roughly $850 million.

The company will become a part of the growing ad stack being developed by AT&T advertising and analytics CEO Brian Lesser. Cheddar first reported that AT&T was eyeing the acquisition last week.

  • AT&T says it reaches 170 million unique direct-to-consumer connections across AT&T-specific wireless, video and broadband.
  • It has 15 million addressable television households, or houses that can be targeted with with digital ads.

The big picture: AT&T recently closed an $85 billion deal to buy Time Warner and developing a digital advertising business was a big part of its pursuit of the content company. AT&T hopes an automated ad business will bring it a new revenue stream that can help subsidize pay TV losses as more people cut the cord.

Go deeper: What AT&T's advertising platform will look like

Go deeper

U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

More than 62,300 U.S. health care workers have tested positive for the novel coronavirus and at least 291 have died from the virus, the Centers for Disease Control and Prevention reported on Tuesday. COVID-19 had infected about 9,300 health professionals when the CDC gave its last update on April 17.

By the numbers: More than 98,900 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 384,900 Americans have recovered and more than 14.9 million tests have been conducted.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 11:00 p.m. ET: 5,589,626 — Total deaths: 350,453 — Total recoveries — 2,286,956Map.
  2. U.S.: Total confirmed cases as of 11:00 p.m. ET: 1,680,913 — Total deaths: 98,913 — Total recoveries: 384,902 — Total tested: 14,907,041Map.
  3. Federal response: DOJ investigates meatpacking industry over soaring beef pricesMike Pence's press secretary returns to work.
  4. Congress: House Republicans to sue Nancy Pelosi in effort to block proxy voting.
  5. Business: How the new workplace could leave parents behind.
  6. Tech: Twitter fact-checks Trump's tweets about mail-in voting for first timeGoogle to open offices July 6 for 10% of workers.
  7. Public health: Coronavirus antibodies could give "short-term immunity," CDC says, but more data is neededCDC releases guidance on when you can be around others after contracting the virus.
  8. What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 34 mins ago - Politics & Policy

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

There are no COVID-19 patients in hospital in New Zealand, which reported just 21 active cases after days of zero new infections. A top NZ health official said Tuesday he's "confident we have broken the chain of domestic transmission."

By the numbers: Almost 5.5 million people have tested positive for the novel coronavirus as of Tuesday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.9 million tests).