Digital marketing tech company Amobee will purchase some assets from Videology, a US-based video and adtech firm that had filed for bankruptcy in May 2018, at US$101 million, the company announced on its website yesterday.
Founded in 2007, Videology struggled despite cost-cutting restructuring initiatives, on the back of media buying trend changes that disadvantaged its business.
As Videology had previously received US$80 million in debt financing, the purchase price that Amobee will pay for Videology’s assets is estimated to be US$20.9 million, according to Amobee.
Amobee, a subsidiary of Singaporean telco Singtel operates a campaign planning and analytics platform, with global clients. With this acquisition, it will gain access to assets including Videology’s tech platform, intellectual property and other holdings amounting to an estimated net book value of US$5.3 million.
It will be leveraging these capabilities to boost its “omni-channel platform and help marketers meet growing consumer demand for premium video and connected TV content,” Amobee said.
This acquisition is subject to court and regulatory approvals and fulfillment of certain closing conditions.
Videology’s founder Scott Ferber – a serial entrepreneur who also built Advertising.com, now AOL-owned – said in May, “The industry is only in the early stages of the TV and video advertising transformation that we were built to power, and it will take resources, capital and time to help transform a market as large as TV.”
Prior to filing for bankruptcy, Videology had raised US$201 million from a number of investors including Catalyst Investors, Comcast Ventures, NEA, Pinnacle Ventures and Valhalla Partners.
Speaking to AdNews, Chris Mooney, a VP at Videology, noted that the filing is only restricted to Videology’s US business and has no impact on the firm’s business in Australia. “We can confirm that Videology has no plans to exit the market and in fact, Australia continues to be one of our most successful operations globally.”
Editor: Nadine Freischlad