According to a Reuters report, AT&T Inc.’s (T - Free Report) advertising unit Xandr has acquired Clypd for an undisclosed amount to expand into the television ad realm. The strategic buyout is the second of its kind by Xandr after the purchase of AppNexus in mid-2018.
Headquartered in Somerville, MA, Clypd is an advertising sales technology platform dealing with the television industry. It simplifies decision-making process to better target TV ads by focusing on an algorithmic, data-driven foundation that allows media firms to leverage the shifts in media consumption and new data sources. In particular, Clypd utilizes data to enable advertisers to target viewers more accurately by their interests to improve the efficacies of their ad campaigns.
The acquisition will facilitate Xandr to introduce personalized TV ads and augment its linear TV ad space to Xandr Community – a curated marketplace of publishers that enables advertisers to reach large scale audience in a premium video environment. Xandr Community offers marketers a perfect platform to buy media across multiple touchpoints to connect with hard-to-reach audience as digital, video and TV converge.
Xandr will aim to leverage the integrated platform to deliver effective ad messages to a wider population, allowing advertisers to combine the power of addressable TV with the precision and scale of digital market. The transaction is likely to improve the overall value of its robust ad-supported premium video content portfolio, such as Turner Networks, Audience Network and Otter Media.
With an integrated business platform, Xandr’s parent firm AT&T aims to reinvent advertising for the next generation and give a new dimension to its business model. It also aims to roll out a streaming service in spring 2020 with an unrivaled bouquet of premium and exclusive content for an impressive direct-to-consumer experience across all the age groups. Dubbed HBO Max, the strategic move will equip the company to play catch-up with avant-garde media firms, like Netflix Inc. (NFLX - Free Report) and The Walt Disney Company (DIS - Free Report) , to secure a bigger pie of the streaming service market. With its commercial debut, HBO Max will offer about 10,000 hours of premium content, leveraging an extensive collection of exclusive original programs and the most sought-after shows from WarnerMedia’s vast portfolio of beloved brands and libraries. All these initiatives augur well for the top-line growth of the company.
The stock has gained 32.5% year to date compared with the industry’s rally of 17.6%.
We remain impressed with the healthy growth prospects of this Zacks Rank #3 (Hold) company. A better-ranked stock in the industry is United States Cellular Corporation (USM - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United States Cellular delivered average positive earnings surprise of 38.3% in the trailing four quarters, beating estimates thrice.
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