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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IMPACT


Magnite was formed in 2020 through the combination of the Rubicon Project and Telaria. Telaria was previously Tremor Video until it sold its DSP business to Taptica (which is now known as Tremor International) in 2017, and renamed itself Telaria. Rubicon Project’s bu…

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