updated 09:51 am EDT, Wed August 7, 2013
Adap.tv doubled revenues yearly prior to purchase
AOL has revealed it is acquiring video advertising marketplace Adap.tv, in what has been called its biggest purchase since Tim Armstrong became chief executive of the company. Said to be worth $405 million in combined cash and stock, the deal is higher than the $315 million paid out for the Huffington Post two years ago.
The purchase of Adap.tv provides AOL with a complete platform for video advertising and publishing, along with a service that has managed to grow its global revenue by over 100 percent per year for the last three years running. The addition of Adap.tv to AOL's roster will help it with its own online video offerings, both in production and monetization, as well as creating new video content for AOL's existing brands. TechCrunch writes that the deal is expected to complete in the third quarter of this year.
AOL's latest earnings report showed it as having a net income of $28.5 million for the quarter, a year-on-year reduction of 95 percent due to the sale of patents to Microsoft last year. Total revenue of $541.3 million includes $361.2 million in advertising revenue for the quarter and $166 million from Internet access.