Adobe has agreed to acquire TubeMogul, a platform for buying and measuring digital video advertising.
Adobe says it will pay $14 per share, for a total acquisition price of $540 million. The addition of TubeMogul is supposed to add a strong video component to the Adobe Marketing Cloud, which already covers, search, display and social advertising (and already includes Adobe Primetime, a product for creating and monetizing video across devices).
“Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs,” said Brad Rencher, Adobe’s executive vice president and general manager for digital marketing, in the acquisition release. “With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertising, providing even more strategic value for our Adobe Marketing Cloud customers.”
TubeMogul had its IPO in 2014, but its share price has tumbled in recent months, closing at $7.67 yesterday. In its most recent earnings report, the company reported GAAP revenue of $56.1 million, with a loss of $12.4 million.
The deal is expected to close in the first quarter of 2017.