AT&T announces acquisition of ad tech firm AppNexus

AT&T has announced it will acquire AppNexus, one of the largest privately-owned ad exchanges.

Terms of the deal were not disclosed, but The Wall Street Journal reports that the price tag is around $1.6 billion.

Reports say the acquisition will help AT&T build its automated digital advertising business that could compete with Google and Facebook’s massive duopoly.

“The fit was so good with the assets that AT&T has and has acquired,” says venture capitalist and AppNexus director Mike Tyrrell, who adds that deal likely would not have happened had AT&T been unable to complete its purchase of Time Warner.

Read also: Uber begins fight to keep its London license over safety issues

There were reports last year that AppNexus, like some of its ad tech rivals, would go public. Many have instead sought buyers in a harsh ad tech landscape. Other tech companies, like Salesforce and Oracle, have recently invested in ad tech companies valued at roughly $850 million.

The company will become a part of the growing ad stack being developed by AT&T advertising and analytics CEO Brian Lesser. Cheddar first reported that AT&T was eyeing the acquisition last week.

 

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