Photoshop maker Adobe to buy video ad firm TubeMogul
- Donald Trump Sworn in as 45th U.S. President
- U.S. stocks pare gains after Trump's inaugural speech
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Herbalife (HLF) Says SEC Requested Documents on Anti-Corruption Compliance in China; Reviewed with DoJ
Adobe company logos are seen in this picture illustration taken in Vienna July 9, 2013. Picture taken July 9, 2013. REUTERS/Leonhard Foeger/File Photo
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
(Reuters) - Photoshop software maker Adobe Systems Inc said on Thursday it would buy advertising company TubeMogul Inc for about $540 million, net of debt and cash, giving it a bigger presence in the rapidly growing online video market.
Adobe's $14 per share cash offer represents an 82.5 percent premium to TubeMogul's Wednesday close.
Shares of TubeMogul, which allows advertisers to buy video ad space using its software, jumped to $13.95 in early trading on Thursday.
The deal will help Adobe add an ad buying platform to its digital marketing unit, which offers tools for businesses to analyze customer interactions and manage social media content.
Advertising technology firms such as TubeMogul, Rocket Fuel Inc and Tremor Video Inc face fierce competition from online advertising giants Facebook Inc and Alphabet Inc's Google.
Up to Wednesday's close, TubeMogul's shares had fallen nearly 44 percent this year.
Facebook, Google and Twitter Inc have all been betting big on video over the past year, a format where advertisers are willing to pay a premium for a few seconds of users' undivided attention.
"Whether it's episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs," said Brad Rencher, Adobe's executive vice president of digital marketing.
Adobe said the acquisition would not have an impact on its adjusted earnings in the year ending December 2017.
(Reporting by Rishika Sadam in Bengaluru; Editing by Sai Sachin Ravikumar)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BofA/Merrill Lynch Upgrades CF Industries (CF) to Buy, Says "Consensus Estimates Now Beatable"
- Checkpoint Software (CHKP) PT Raised to $94 at Stifel Following 4Q Beat
- Union Pacific (UNP) PT Raised to $102 at Stifel Following 4Q Report
Create E-mail Alert Related CategoriesReuters
Related EntitiesTwitter, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!