RTL Group has paid €107 million to take a 65% majority stake in US video advertising platform SpotXchange.
The German media group said the deal establishes it as the first major broadcaster to invest in the rapidly growing market of programmatic online video advertising.
It said that it also marks the next step of RTL Group’s strategy to become “a leading player in all segments of online video and online video advertising.”
“Following our investments in non-linear TV services and in multi-channel networks on YouTube, RTL Group has already become the leading European media company in terms of online video views. The logical next step in our strategy is a structural move into the area of digital monetisation – improving our skills by adding innovative data- and technology-based competencies,” said RTL Group’s co-CEOs in a statement, Anke Schäferkordt and Guillaume de Posch.
SpotXchange was founded in 2007 and its video ad monetisation platform is used by hundreds of publishers around the world, including The Atlantic, Hearst Corporation, Meredith Video Studios, Mail Online and Adaptive Media.
Along with the initial payment, RTL has agreed an earn-out component that could increase the initial consideration dependent on the future performance of SpotXchange. RTL Group has also reserved the right to acquire the remaining shareholding in the business in the future.
Subject to US competition authority approval, the deal is expected to close by the end of August.