Streaming media firm Roku, said last Tuesday that it has agreed to acquire Boston-based Dataxu, a video advertising platform that enables marketers to plan and buy campaigns, for $150 million in cash and stock.
In Dataxu, Roku is getting an automated bidding and self-serve software solution to manage ad campaigns programmatically across digital platforms. The company is buying Dataxu’s proprietary device graph and data science to allow marketers to optimize business outcomes across TV, OTT, desktop, and mobile. Dataxu’s team is also coming over to Roku.
The acquisition has been approved by each company’s board of directors and is anticipated to close in the fourth quarter of 2019. Roku plans to discuss the deal further on its upcoming earnings call.
Roku reported having 30.5 million active accounts as of the end of June and streams more ad-supported programming than any other platform, according to measurement firm comScore.
In a press release announcing the acquisition, the company said owning Dataxu will “enable Roku to provide marketers a single, data-driven software solution to plan, buy, and optimize their ad spend across TV and OTT providers.”
In announcing the deal, Roku noted that the market for over-the-top advertising will continue to expand as the cord-cutting race heats up. Today, advertisers spend over $70 billion on traditional TV. Over-the-top viewing accounts for only 29% of TV viewing but has so far only captured 3% of TV ad budgets. With more consumers adopting streaming, automated solutions will help unlock those additional TV ad dollars, Roku believes.
“TV advertising is shifting toward OTT and a data-driven model focused on business outcomes for brands,” said Anthony Wood, chief executive officer at Roku, in a statement. “The acquisition of Dataxu will accelerate our ad platform while also helping our content partners monetize their inventory even more effectively,” he said.