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RTL closes SpotX sale

Media giant RTL Group today has closed the sale of its US ad-tech company SpotX to Magnite, the sell-side advertising platform.

Since the announcement of the transaction on February 5, RTL exercised an option to increase the cash component of the transaction and received US$640 million (€528 million) in cash and 12.37 million shares of Magnite stock.

Based on the closing price of Magnite stock as at April 29, the agreement implies an enterprise value for SpotX of US$1.14 billion
RTL said its shareholders will benefit from the cash proceeds in line with the Group’s dividend policy.

Magnite has previously said that it will integrate SpotX to create the “largest independent CTV and video advertising platform in the programmatic marketplace.” The combination promises to provide better support for sellers and create an alternative player in the CTV ad space.

The combined company will have customers including Discovery, Disney, Electronic Arts, Microsoft, ViacomCBS and WarnerMedia.

RTL has been in the process of evaluating the potential sale of its French subsidiary M6 Group and has also sought buyers for RTL Belgium.

Reporting RTL’s results in March, CEO Thomas Rabe reiterated that “there is a strong case for consolidation in the European broadcasting industry” and that the group was “currently reviewing such options for our controlling stake in the French broadcaster Groupe M6, with a view to creating value for our shareholders”.

Tags: RTL, SpotX