AOL Reports Better Than Expected Earnings, Acquires Adapt.Tv Video Advertising Company
As part of its aggressive strategy to remake itself and continue life in the black, AOL is also planning to acquire Adap.Tv, a video advertising company, for $405 million. (The deal is for $322 million in cash and $83 million in stock.)
This acquisition is in line with previous ones, including 5Min Media, Goviral, and even the Huffington Post, as AOL is looking to make its bones with online video, content, and advertising.
Amir Ashkenazi, CEO, Adap.tv (left) and Tim Armstrong, Chairman & CEO, AOL (right) (Credit: Businesswire)
"There's roughly a $240 billion industry in the TV advertising business, which is going to go from TV to [Internet]-delivered video over the next decade,"AOL Chairman and CEO Tim Armstrong told CNBC. "[Adap.Tv] was built to essentially make that transition for advertisers and marketers and for agencies…to help them move their TV budgets to IP-delivered TV."
Armstrong believes that the company’s efforts, particularly as it pertains to the Adap.Tv buy, will double AOL’s profits in the “video space”.