Recently, Roku has announced an acquisition deal of Dataxu for $150 million in stocks and cash. Now ROKU is more than a producer of TV streaming boxes and dongles. After buying an advertising company, Roku has become a powerful advertising agency. Dataxu offers automated tendering and self-serve software, which enables marketers to manage programmatic ad campaigns across various digital platforms. The latest deal will enable Roku to offer marketers with software to organize, purchase and manage their ad spend among TV and over-the-top (OTT) suppliers. The company also said Dataxu’s team comprises of strong talent in software engineering, data science, and analytics. Thus the bid will assist Roku to further enhance its set of tools for advertisers, at the same time when it’s business platform massively contributes to Roku’s bottom line as against hardware sales.
Roku CEO Anthony Wood said TV advertising is transforming toward OTT and a data-driven model centered on business outcomes for brands. He added the acquisition of Dataxu will accelerate their ad platform. Even more, it will assist their content partners to monetize their inventory efficiently. As per the statement of Dataxu’s co-founder and CEO Mike Baker, the company’s vision has always remained to bring its potentials to the most powerful form of media i.e., TV. He also added that its business will remain as usual for partners, workers as well as customers.
Reportedly, a year ago, Dataxu had appointed investment bank GCA Advisors as it explored a potential sale. At the time, Dataxu was primarily seeking a valuation of around $300 million. Even more, reports from Crunchbase have revealed that Dataxu has raised $87.5 million in funding. On account of the latest deal, Roku will be able to offer advertisers with data-driven solutions. So with more than 30.5 million active accounts, Roku might get a bigger slice of the pie. Probably the deal could take place by the end of the current year.
Kevin has worked as a business executive in an insurance firm before joining Janmorgan Media as the major business correspondent. After joining here, he has helped craft not only some of the insightful articles but also regular articles that don’t compromise perspective. If not checking out business publications or news, you can see her listening to music.