By RTT News,
July 03, 2014, 07:59:00 AM EDT
(RTTNews.com) - Social networking giant Facebook has acquired video ad tech startup LiveRail in a bid to boost its revenues from video advertisements. Financial terms of the deal were not disclosed, though media reports indicated the deal value to be between $400 million and $500 million.
"We believe that LiveRail, Facebook and the premium publishers it serves have an opportunity to make video ads better and more relevant for the hundreds of millions of people who watch digital video every month," Brian Boland, VP of ads product marketing at Facebook, said in a statement.
San Francisco, California-based LiveRail, founded seven years ago by Andrei Dunca and Mark Trefgarne, is an online video advertising platform that helps publishers monetize their video content, control who accesses their inventory, and drive higher revenue and fill rates with access to hundreds of demand partners.
It helps companies such as Major League Baseball (MLB.com), ABC Family, A&E Networks, Gannett, and Dailymotion to optimize delivery of video ads on mobile and the web through real-time bidding and its proprietary market data.
LiveRail was reportedly looking at an option of going public later this year, but Facebook seems to have provided a better offer.
"We realized that by joining forces we'd be able to draw upon our respective strengths to move even faster towards our shared vision of creating the advertising platform of the future," LiveRail CEO Trefgarne wrote in a blog post.
With television increasingly moving to the Internet, social media companies are vying with each other to acquire low-cost start-up companies to boost their online advertisement platform as both broadcasters and advertisers would follow viewers into this new digital TV age.
Another social media giant Twitter, Inc. ( TWTR ) acquired New York-based advertising technology start-up Tap Commerce for reportedly for $100 million on Monday as well as specialist native mobile advertising startup Namo Media for reportedly $50 million in early June. The two deals would complement Twitter's $350 million acquisition of mobile-ad exchange MoPub last year.
For comments and feedback: contact email@example.com