RTL Group Buys Majority Stake in Video Ad Platform SpotXchange

July 31, 2014 World Screen Top Stories
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LUXEMBOURG/DENVER: RTL Group has entered into an agreement with the current shareholders of SpotXchange to purchase a 65-percent majority stake in the U.S. video advertising monetization company for 107 million euros ($144 million).

In addition to the initial investment, the two agreed on an earn-out component that might increase the paid consideration subject to the future performance of SpotXchange. The agreement also gives RTL Group the option to acquire the remaining shares in the future. Under the terms of the transaction, RTL Group will appoint three of five members of the board of SpotXchange. Michael Shehan and Steve Swoboda will continue to manage the day-to-day operations of the company, reporting to its board.

SpotXchange, founded in 2007, is an online advertising marketplace exclusively focused on video. It currently provides a video ad monetization platform for hundreds of publishers around the world, including Hearst Corporation, The Atlantic, Mail Online and Adaptive Media.

Anke Schäferkordt and Guillaume de Posch, co-CEOs of RTL Group, said in a joint statement: “Following our investments in non-linear TV services and in multichannel networks on YouTube, RTL Group has already become the leading European media company in terms of online video views. The logical next step in our strategy is a structural move into the area of digital monetization—improving our skills by adding innovative data- and technology-based competencies. SpotXchange is the perfect fit for RTL Group for such a move: it has a first-class management team that has built a leading, state-of-the-art platform for programmatic selling of online video advertising. With its impressive growth story and strong positioning in the United States, SpotXchange also represents a unique opportunity to enhance RTL Group’s presence in the world’s biggest and most advanced media market.”

SpotXchange co-founders Shehan, CEO, and Swoboda, COO and CFO, added: “We are thrilled to be joining the RTL Group, a global leader in media and entertainment, and believe they are the ideal partner to help SpotXchange expand the reach of our comprehensive video ad monetization services. This investment demonstrates RTL Group’s progressive vision and embrace of programmatic trading, ad serving and yield optimization in the digital arena.The companies comprising RTL Group operate in a decentralized fashion which will allow SpotXchange to thrive and grow as the last independent digital video ad monetization platform while providing significant opportunities through partnership with RTL Group’s leading European broadcast companies and top tier global content producers. Joining RTL Group will present incredible benefits and opportunities for SpotXchange’s publishers, buyers and people.”