Adobe Systems Agrees to Acquire TubeMogul
November 10 2016 - 9:37AM
Dow Jones News
By Tess Stynes
Adobe Systems Inc. (ADBE) agreed to acquire ad technology
company TubeMogul (TUBE) in a deal valued at roughly $515 million
that aims to strengthen Adobe's position in digital marketing and
advertising technology.
The deal, expected to close early next year, is valued at
roughly $540 million, net of debt and cash.
TubeMogul holders will receive $14 a share for each share held,
an 83% premium to Wednesday's close. The company's shares have been
halved since April amid a shift in ad spending from desktop to
mobile. The stock soared 82% to $13.98 in recent premarket
trading.
Brad Rencher, Adobe's digital marketing general manager, said
that with the acquisition of TubeMogul, Adobe is aiming to create a
"one-stop shop" for video advertising for its marketing cloud
customers.
TubeMogul's technology includes a product designed to help
marketers buy web video ads aimed at specific people using
automated software through direct buys with a number of well-known
media companies simultaneously.
Adobe and TubeMogul share some big customers, including Allstate
Corp. (ALL), Johnson & Johnson (JNJ) and Southwest Airlines Co.
(LUV).
TubeMogul, which will become part of Adobe's digital marketing
business, will continue to be led by its current chief executive,
Brett Wilson.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
November 10, 2016 09:22 ET (14:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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