Facebook to Acquire LiveRail for an Undisclosed Amount
In December, 2013, LiveRail announced that it was considering launching an IPO in the second half of 2014. It appears that plans have changed.
Today, Facebook announced that it will acquire video ad platform LiveRail for an undisclosed amount. Facebook wants to offer more relevant video ads to viewers, wrote Brian Boland, vice president of ad product marketing, as more relevant ads will better engage viewers and deliver stronger results for marketers. Serving more relevant, targeted ads will also help publishers charge higher CPM rates.
LiveRail already works with Major League Baseball, ABC, A&E Networks, Gannett, and Dailymotion, Boland wrote, helping them stream targeted video ads. He noted that marketers have access to premium video inventory through the LiveRail platform.
Citing an unnamed source, TechCrunch reports that Facebook is paying between $400 million and $500 million for the 170-person company. While many video ad companies have been changing hands lately, acquisition seems to be the safer bet. AOL paid $405 million for Adap.TV, while YuMe and Tremor Media both went the IPO route and have seen their values shrink since going public.
LiveRail was founded in 2007. The company's headquarters are in San Francisco, California, and it has offices in New York, London, and Romania. It previously received backing from Pond Ventures.
Connected TV views are growing at a fast rate. Now, advertisers can use programmatic buying to reach desired demographic segments.
Ten pre-selected launch partners are already using the APIs, letting publishers distribute video to Facebook with more control than before.
QuickFire technology will let Facebook create smaller file sizes while maintaining video quality, improving the mobile experience.
YouTube's One Channel design has inspired Facebook to create a similar video layout for brands, which will roll out to all Facebook Pages soon.
Sports, entertainment, and music sites are benefiting as brands look to stream their commercials pre- and post-Super Bowl.
Already a leader in original online videos, AOL places a big bet on programmatic online video ad buying.