Magnite Bets Big on CTV, Acquires SpotX from RTL Group for US$1.17 Billion

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By Michael Inouye | 1Q 2021 | IN-6093

 

Magnite Acquired SpotX from RTL Group for US$1.17 Billion in Stock and Cash

NEWS


On February 5, 2021, Magnite announced its acquisition of SpotX from the RTL Group for cash (US$560 million) and stock (14 million shares in Magnite stock) totaling US$1.17 billion (based on the closing price of Magnite stock on Thursday, February 4, 2021). Considering that SpotX’s 2020 revenue totaled US$116 million and the RTL Group spent EUR€107 million in 2014 (for 65% share) and EUR€123 million in 2017 for the remaining shares, Magnite paid a hefty price on the strong prospects for video advertising and CTV (Connected TV)  in particular. Given the company’s recent history, however, the acquisition makes good sense.

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