AOL to buy Adap.tv for $405 million in cash and stock, in its biggest acquisition since becoming an independent company. The deal is expected to close by the end of September. AOL will pay $322 million in cash and about $83 million in stock. Adapt. TV is a video ad platform which helps businesses buy and sell ads for online video electronically.
“AOL is a leader in online video, and the combination of AOL and Adap.tv will create the leading video platform in the industry,” Tim Armstrong, AOL’s chairman and chief executive, said in a statement. “The Adap.tv founders and team are on a mission to make advertising as easy as e-commerce, and the two companies together will aggressively pursue that vision.”
Video, with its ability to command higher ad rates, has been one of the biggest points of focus for Internet media companies for some time. AOL has been seeking to amass sources of video content as part of its bet that consumers will increasingly watch video online instead of on television.