RhythmOne Eyes Acquisitions To Build Advertising Exchange Scale
November 15 2016 - 6:55AM
Dow Jones News
By Rory Gallivan
LONDON--Online advertising technology company RhythmOne PLC
(RTHM.LN) is on the lookout for acquisitions to increase customer
numbers so it can better compete with online advertising giants
such as Facebook and Google.
Chief executive Brian Mukherjee said in an interview with Dow
Jones Newswires Tuesday that the company has been busy developing
its exchange for advertisers and publishers to buy and sell online
advertising.
"We believe the transition of our platform is complete; now we
need to plug more (advertisers and publishers) into our platform,"
he said, adding that the company hopes to do this through
acquisitions.
RhythmOne's platform enables publishers to sell online
advertising space without the human interaction that takes place in
traditional advertising sales.
Facebook and Google, which operate their own online advertising
platforms, dominate online advertising, but making acquisitions
would enable RhythmOne to lift the number of customers using its
platform and compete with Internet giants more effectively, Mr.
Mukherjee said.
Analysts expect the advertising technology industry to
consolidate as ad tech companies seek to increase the volume of
advertising space being traded on their platform by giving
publishers access to as many advertisers as possible and vice
versa.
RhythmOne, which was formerly known as Blinkx and initially
specialized in video search technology, began life as an
independent entity in 2007 when it was spun out of Autonomy, the
U.K. technology company bought by Hewlett Packard in 2011.
It achieved a valuation above a billion dollars in 2013 as
investors bet it would benefit from the transition to online
advertising, but the shares plunged amid issues including a
declining desktop advertising market. However, the shares have
risen strongly this year as cost cuts help it move back towards
profitability.
Earlier Tuesday, the company said its pretax loss for the six
months ended September 30 narrowed to $10.7 million from $79.2
million a year earlier, on revenue down to $80.7 million from $91.4
million. The company has been reducing its desktop advertising
activities to focus on mobile advertising.
Shares at 1006 GMT, down a penny, or 1.4%, at 37 pence valuing
the company at GBP148.1 million.
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
(END) Dow Jones Newswires
November 15, 2016 06:40 ET (11:40 GMT)
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