Through Acquisition of YuMe, RhythmOne Accesses Premium Video and Drives Multicultural Targeting

What: San Francisco ad tech company RhythmOne LLC has acquired Redwood City-based YuMe Inc. in a cash and stock deal valued at about $185 million.
Why It Matters: Through YuMe, Rhythm One “gains access to premium video supply including emerging, high-value connected TV inventory, unique customer insights, cross-screen targeting technology and established demand relationships.”

San Francisco ad tech company RhythmOne LLC has acquired Redwood City-based YuMe Inc. in a cash and stock deal valued at about $185 million.

RhythmOne changed its name from blinkx earlier in 2017 when it named Ted Hastings as its CEO. Speaking confidently about the added value that the acquisition will bring, Hastings said: "We believe this combination will give RhythmOne the resources, relationships, and talent to drive value for its shareholders, and true a return on investment.”

Through YuMe, RhythmOne Gains Access to Premium Video Supply

In a market increasingly driven by online video, this deal is significant in the sense that “through YuMeRhythmOne gains access to premium video supply including emerging, high-value connected TV inventory, unique customer insights, cross-screen targeting technology and established demand relationships," said Hastings.

Jorg Nowak, SVP International at YuMe, took it a step further, saying: “I believe the online advertising market is ready for a comprehensive, independent advertising technology, and our combined company will be well-positioned to lead the market.” He also pointed to the fact that the two ventures are “near perfect complements to one another," pointing to YuMe’s strong relationships with agencies and brands and its demand side platform, which "align well with RhythmOne’s unified programmatic platform and sizeable supply-side footprint.”

Acquisition Will Facilitate Better Multicultural Targeting

Nowak signaled that the acquisition will enable better Multicultural targeting within the United States thanks to the fact that “RhythmOne will bring us greater access to a massive supply of brand-safe inventory.”

He also pointed out that RhythmOne’s analytics and data management platform “include a unified, proprietary data set that will enhance our own data and audience targeting toolbox to allow us to reach multicultural audiences with precision and scale.”

While Nowak asserted that the acquisition will not affect YuMe’s strategy for LatAm, he did say that he envisioned “the value that we can offer LatAm based advertisers and publishers increasing exponentially.”

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Gretchen Gardner @gardnergretchen

Gretchen is a communications specialist and owner of GMG Strategic Communications. She currently lives in Buenos Aires, Argentina, where she works with Argentine and international ventures on shaping their content, branding and marketing strategies to position them for success in global markets. She is also a lover of all things information and has worked consistently in journalism since college, most recently as a writer at Portada and as the deputy editor of The Bubble, the first informal, English-language news portal in Buenos Aires. She hails from Washington, D.C. and has a bachelor's degree in history and Hispanic studies from Hamilton College as well as a master's in international relations from the Argentine university Universidad Torcuato Di Tella.
Gretchen is a communications specialist and owner of GMG Strategic Communications. She currently lives in Buenos Aires, Argentina, where she works with Argentine and international ventures on shaping their content, branding and marketing strategies to position them for success in global markets. She is also a lover of all things information and has worked consistently in journalism since college, most recently as a writer at Portada and as the deputy editor of The Bubble, the first informal, English-language news portal in Buenos Aires. She hails from Washington, D.C. and has a bachelor's degree in history and Hispanic studies from Hamilton College as well as a master's in international relations from the Argentine university Universidad Torcuato Di Tella.

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