AT&T will acquire digital ad firm AppNexus, a deal that will allow the telecommunications giant to further capitalize on its merger with Time Warner.
The transaction announced on Monday for an undisclosed price will help AT&T grow its advertising platform at a time when the company hopes to expand its content offerings to consumers. Advertising chief Brian Lesser said the deal would provide brands and publishers with new ways to target consumers.
“Ad tech unites real-time analytics and technology with our premium TV and video content,” AT&T’s Lesser said in a statement. “So, we went out and found the strongest player in the space.”
AT&T is moving quickly to build on its merger with Time Warner after a federal judge approved the deal earlier this month. The company announced last week a new bundled TV service that included access to Time Warner-owned channels like AMC and CNN.
The consolidation between a major content provider and a top distributor will allow the new AT&T to collect an immense amount of consumer data. The company can use that information to more specifically target ads toward its customers, a major draw for digital advertisers looking to grow beyond Google and Facebook.
The transaction is expected to close in 2018.
