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AOL Will Acquire Adap.TV for $405M

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In a surprising move, AOL announced that it has agreed to acquire online video advertising company Adap.TV for $405 million. While AOL has been funding original online video series to help it transition to an online entertainment destination, it will now claim a major stake in video advertising, as well. In the comScore online video rankings for June, the latest available, Adap.TV was the fourth largest online video ad distributor in the U.S., serving 2.2 billion ads for the month, behind only Google sites, LiveRail, and BrightRoll. Of course, AOL is no stranger to online video advertising: AOL was ninth on the list, serving 670.4 million ads on its own videos.

By acquiring Adap.TV, AOL isn’t just buying a bigger chunk of the ad market, it’s also getting a programmatic video ad leader and making a smart investment in the future of programmatic buying. In its press release on the acquisition, AOL notes that Adap.TV is the only platform that offers programmatic buying and selling across all screens.

Adap.TV will continue to operate independently post acquisition. The $405 million purchase price will be made up of $322 million in cash and $83 million in AOL common stock. The acquisition has been approved by the boards of directors for both companies, as well as Adap.TV’s stockholders. AOL expects to complete the purchase in the third quarter of this year. 

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