Microsoft reached a deal to acquire AT&T’s advertising know-how division, Xandr, searching for to strengthen its personal advertising enterprise because the business shifts away from on-line monitoring applied sciences.
AT&T has reportedly been searching for to divest Xandr since earlier this 12 months, a part of a broader effort to slim down its enterprise. The telecom big is individually spinning out its WarnerMedia business in a merger with Discovery.
Xandr will assist Microsoft develop an advert tech platform for “a post-cookie world,” says Mikhail Parakhin, Microsoft’s President of Internet Experiences, in a blog post, referring to the tech industry’s shift away from tracking technologies that focus on adverts based mostly on a consumer’s on-line exercise. He stated their method “respects client privateness preferences, understands publishers’ relationships with customers and helps advertisers meet their objectives.”
Microsoft, which owns the Bing search engine and LinkedIn social community as well as to Xbox and different media properties, needs to place itself to compete extra successfully with Google, Fb and others in on-line adverts. The Redmond firm reported $2.7 billion in search and news advertising revenue within the September quarter, up 37% from the identical interval the 12 months earlier than.
AT&T launched Xandr in 2018, combining its information and analytics enterprise with applied sciences from its acquisition of digital and TV ad marketplace AppNexus. The title “Xandr” is an homage to AT&T founder Alexander Graham Bell.
Monetary phrases of Microsoft’s settlement to acquire Xandr weren’t disclosed within the announcement Tuesday morning, and a spokesperson for Microsoft declined to present additional particulars. The businesses say the acquisition would require customary regulatory approvals. They didn’t present a timeframe for finishing the deal.
AT&T reported more than $2 billion in revenue for Xandr in 2019 however has not given detailed monetary outcomes for the unit since then. Axios reported in July that Xandr was shedding “tens of tens of millions a 12 months and has been grossly mismanaged by AT&T,” citing unnamed sources. On the time, Axios stated, AT&T was in talks to promote Xandr to Indian advert tech big InMobi.
It’s the most recent effort by Microsoft to increase its advertising enterprise through acquisition, courting again to the corporate’s $6.3 billion acquisition of aQuantive in 2007, which went so poorly that Microsoft was forced to take a giant writedown.