$148M is Still A Lot of Money!
Author: Chris Bruno, Telecom Council
We have all become so inured by the news of companies with billion-dollar and multi-billion-dollar pre- & post-IPO valuations–referred to as a mythical animal (which somehow became the symbol of Scotland?)–that is it refreshing to see a major player in a growing market get purchased in cash for a number which is still really big, but not incomprehensible for the average human being to consider.
Our friends at Smaato, the leading independent global real-time advertising platform for mobile publishers and app developers, received an offer from Beijing-based Spearhead Integrated Marketing Communication Group (SZSE: 300071) to be acquired for $148 million through an M&A fund invested by one of its fully-owned subsidiaries.
Smaato, according to its website, is the leading global real-time advertising platform for mobile publishers and app developers. It runs the world’s largest independent mobile ad exchange and has been pioneering innovative, mobile-first solutions for publishers since 2005. Smaato manages up to 10 billion ads every day around the world, across over 1 billion mobile users each month.
In their report, “Global Trends in Mobile Advertising, Q4 2015,” Smaato states, “Data is the New Currency in Mobile: advertisers will pay substantially more to publishers who can provide data”–targeting consumers by gender and geography.
Smaato’s SPX Platform provides dynamic, real-time competition for every ad impression providing publishers & app developers with higher eCPMs and immediate monetization. Their goal is to create a transparent exchange for publishers, app developers and advertisers that is brand-safe, fraud-free, viewable – and effective. A worthy goal, to be sure. Smaato CEO and co-founder, Ragnar Kruse, stated “This collaboration creates enormous new opportunities for both partners . . . Together, we unlock potential for enormous growth and exciting possibilities that neither business could achieve alone.”