Amazon To Acquire Ad Servers From Bankrupt Firm Sizmek

Posted: Jun 1 2019, 8:25pm CDT | by , Updated: Jun 2 2019, 2:18am CDT, in Advertising News

 

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Amazon to acquire ad servers from bankrupt firm Sizmek

The deal is expected to boost the e-commerce giant's ad offerings as it battles with Google in attracting ad spending.

Amazon is acquiring two ad-serving technologies from bankrupt advertising firm Sizmek for an undisclosed amount.

In a brief statement May 31, the U.S. e-commerce giant said it entered into a definitive agreement to buy Sizmek Ad Server and Sizmek Dynamic Creative Optimization, confirming earlier reports about the deal.

Sizmek DCO allows clients to create ads that are targeted to specific audiences, while the Ad Server offers a range of advertising solutions, such as ad serving and creative authoring.

The announcement of the deal comes two weeks after Bloomberg News reported that Amazon is in talks to snap up the Sizmek unit to better compete in its online advertising battle with Google.

Sizmek's Ad Server helps advertisers target spot placements on the internet and measure their effectiveness.

Texas-based Sizmek filed for bankruptcy March 29, declaring that it owes money to 1,000 to 5,000 creditors, including $4.6 million to Google and $1.3 million to Amazon Web Services EMEA. At the time of the filing, Sizmek said it will "explore all available options, including a potential sale of our business."

Prior to its transaction with Amazon, Sizmek has already sold off its data and programmatic platforms DSP and DMP to marketing firm Zeta Global. In a filing with the U.S. Bankruptcy Court of the Southern District of New York, Sizmek stressed that its creditors "must sell the DSP on an urgent, expedited basis to avoid the complete collapse of the DSP going concern value."

Most recently, Sizmek confirmed on its website that it agreed to sell its two units to Amazon, adding that upon closing of the deal, the company will continue to operate separately from Amazon Advertising.

Meanwhile, Amazon said it will continue serving the clients of Sizmek's two platforms when the transaction closes.

Amazon, which now offers other technological solutions outside its legacy retail business, is up against Google in the battle for ad spending. In 2018, Google recorded $32.64 billion in advertising revenues, up from $27.23 billion in 2017, while Amazon generated $10.11 billion from sales of advertising services and businesses related to other service offerings.

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<a href="/latest_stories/all/all/81" rel="author">Mandy Jean</a>
Mandy covers the latest news in Tech and Business.

 

 

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