Roku has announced the completion of its acquisition of dataxu.
Initially announced at the end of October, dataxu will provide Roku with a demand-side platform (DSP), device graph technology, and analytics platform. Roku says that it also expects the acquisition will accelerate its ad tech roadmap and ability to serve a “wide array of advertisers”.
Under the terms of the agreement, Roku is purchasing the company for US$150 million in cash and shares of Roku Class A Common Stock. The acquisition agreement has been approved by each company’s board of directors and is anticipated to close in the fourth quarter, subject to regulatory approvals.
Roku senior vice president of platform business Scott Rosenberg said: “ “This acquisition reinforces our already strong position in the OTT ad space. Acquiring dataxu is a natural progression of our ad tech strategy to offer more buy-side tools and to provide the industry’s best holistic TV plus OTT planning and buying solution that delivers better results for TV buyers.”
Advertising and services has become increasingly important to Roku, with the company shifting its focus from being a mostly hardware-driven business. The segment accounted for 69% of Roku’s overall Q3 revenue (US$179.3 million), with hardware sales – such as the company’s streaming dongles – making up only US$81.6 million.
On the Dataxu acquisition, CEO Anthony Wood wrote in his investors’ note: “We believe the dataxu acquisition will accelerate our platform’s advertising technology roadmap, strengthen our already industry-leading TV streaming platform and give us the opportunity to create an even more appealing offering for advertisers.”
In more consumer-focused operations, Roku has also launched an app for the Apple Watch.
The new app is bundled with version 6.1.3 for the Roku app for iPhone and adds a range of features that are compatible with a range of Roku devices and TV.
Along with basic remote control and voice features, the app also adds a channels launch. In addition, the app can be used to ping missing remotes to activate a chime and make it easier to find.
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