Börse Express – ROUNDUP / RTL sells SpotX to Magnite for $ 1.17 billion: shares in demand

The RTL group wants to sell its advertising subsidiary SpotX for 1.17 billion US dollars (0.97 billion euros) to the US ad tech company Magnite. The total should be paid with 560 million dollars in cash and 14 million Magnite shares, the television company announced on Friday in Luxembourg. The valuation is based on the closing price of the shares on February 4th. The deal has yet to be approved by the authorities and is expected to close in the course of the second quarter.

Investors from RTL and Magnite saw a win-win situation and reacted positively to the deal. On Friday afternoon, the RTL course increased by almost 7 percent to EUR 47.18. Magnite investors reacted even more strongly: The price rose by around 17 percent to 50.72 US dollars.

He is pleased that his company will be able to participate in the future success of SpotX and Magnite as a shareholder, said the head of the RTL group, Thomas Rabe. Advertising technology remains a strategic priority for the group and is necessary for better monetization.

Magnite expects the acquisition to generate more profitability in the Connected TV (CTV) area. The Internet-connected CTV is considered to be particularly attractive in the advertising industry, as new formats can be tested in addition to classic advertising. In addition, thanks to the internet connection, content can be broadcast in a more targeted manner. Magnite boss Michael Barrett was confident: Connected TV, financed by advertising, is only just beginning to tap budgets from linear television. “We are well positioned to be part of the strongest segment of the industry’s growth for the foreseeable future.”

According to its own statements, the RTL group acquired the majority in SpotX in 2014 with 65 percent. At that time, the group put 107 million euros for it. The group then took over the rest three years later for 123 million euros./ngu/knd/he

 ISIN  LU0061462528  US55955D1000

AXC0289 2021-02-05 / 16:22

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