Blog & Insights
Posted by Kezia Wong on July 31, 2014
We are thrilled to share with you this morning that RTL Group has made a strategic investment in SpotXchange, acquiring a majority stake in the company. This is fantastic news for our publishers, buyers, people and the future of SpotXchange. This investment represents a huge opportunity for SpotXchange to accelerate our growth, particularly in Europe, and further advance our goal of becoming the leading comprehensive video advertising monetization platform across desktop, mobile and connected TV for premium publishers around the globe.
With over 10,000 employees and $8 billion in annual revenues, RTL Group is the leading European entertainment network, with interests in 54 television channels and 27 radio stations. RTL Group is also one of the largest global producers of entertainment content, including their content arm, Fremantle Media, with a number of hugely successful shows such as American Idol and the Idol series, Got Talent and X Factor, which are watched in over 150 countries. RTL Group is also the leading European media company in online video and has become the number 3 global player in the YouTube ecosystem, with investments in multi-channel network (MCN) companies like BroadbandTV.
RTL Group companies operate in a decentralized fashion, which will enable SpotXchange to operate independently. This was an important consideration as we weighed our strategic options. The entire SpotXchange team will remain in place and will continue to be as motivated as ever to achieve our goals with our same “can do” culture and unwavering commitment to the highest possible level of service and transparency. I would say it’s almost business as usual. The only difference being that we have just poured gasoline on the fire and expect to accelerate our global growth even more.
All of us have experienced over the past several years broadcast, digital and content converging into one another, as consumers demand to view their video content where and when they want. With this deal, RTL Group affirms their commitment to the above ideal by being the first major broadcaster and content producer to invest in programmatic video advertising and we’re excited to join forces with a company that shares our vision for a better way to buy and sell video.
We believe this deal provides many advantages to SpotXchange and our buy side and supply side customers.
SpotXchange publishers will benefit greatly from the increased investment in the development of our platform, helping publishers better optimize yield and reduce operational costs across the entire spectrum of devices including mobile, tablet and connected TV. Furthermore, SpotXchange’s global footprint will greatly expand, especially in enormous markets found throughout the EMEA and APAC regions, in which our business to date has been more limited than in the U.S. With the help of RTL and their many global assets, business interests and partnerships, SpotXchange will be able to connect our publishers with even more buyers all over the globe, thereby helping publishers increase yield for their inventory.
For SpotXchange buyers, this deal will offer access to one of the largest online video marketplaces with a growing number of premium publishers offering attractive audience opportunities. Together with RTL Group we see tremendous opportunities to further develop and deepen our relationships with key brands and media buyers, helping them to achieve their campaign goals.
Even more important to us though was that this deal reaffirms our commitment to serving publishers’ needs. We intentionally avoided becoming a feature within another ad tech player’s stack. SpotXchange is a cornerstone investment for RTL Group’s global digital monetization strategy. Our goals are aligned with RTL’s goals and vision, which are in turn well aligned with our customers’ goals.
It’s a very exciting time for the company and we are sure you have many questions. As always, our global team is available to you for any needs that may arise over the next few days.
We thank you for your commitment to SpotXchange and look forward to the incredible benefits and opportunities this deal will create for our publishers, buyers and team.