One of the oldest online ad firms in the business – MediaMind, once known as Eyeblaster, has been acquired by digital media services company DG.
The firm was among the few last standing rich media ad management outfits that hadn’t been bought during a sweep of such acquisitions around five or six years ago. Then, when Eyeblaster – which soon after rebranded as MediaMind – finally filed for an IPO last year, following a failed first attempt, it seemed clear that the firm aimed to remain on its own.
Now, MediaMind cofounder, president and CEO, Gal Trifon says he was presented with an offer he couldn’t pass up. DG’s focus is on producing and serving television ads, and while the partnership holds short-term promise, the true potential lies further ahead.
“Consumers are using TV for online content and online for TV content. It’s clear that the two will become one,” Trifon told ClickZ News.
Still, he recognizes media buyers are not quite ready to take such a platform agnostic approach. “It will be very difficult to implement this vision tomorrow morning,” he said.
In the meantime, MediaMind plans to beef up its online video capabilities in the shorter term, since many online video ad buys come out of TV budgets, like the ones controlled by DG’s clients.
“Longer term, the vision is to be the first company that has already a strong presence on both TV and online and build the platform of the future,” he continued.
The idea is to develop a platform that enables easy conversion from TV spot to interactive digital ad, and enables cross-media measurement. DG also owns Unicast, another elder online ad tech firm, the one that introduced the term “Superstitial” into the digital advertising lexicon.
Trifon said he does not anticipate any changes for MediaMind employees, though he does expect expansion of the firm’s R&D base in Israel.
“Because we worked so hard to go public, and almost a year later we find ourselves in this situation…this is a very special situation,” added Trifon, who will serve as DG’s new chief digital director as a result of the acquisition.
According to terms of the transaction – valued at $517 million equity or $414 million enterprise – DG will buy all of MediaMind’s outstanding shares for $22 per share in cash. The SEC filing for the acquisition states, “For the twelve months ending March 31, 2011 the companies had in excess of $100 million in digital advertising revenue on a pro forma basis. With the MediaMind acquisition, DG expects to realize approximately $15 million in cost synergies identified to date, with clear opportunities for enhanced revenue growth.”