What challenges Amazon will face buying Sizmek ad server
Amazon has reportedly managed to outbid Maurice Levy-backed ad tech firm owner Ycor for the purchase of Sizmek’s ad server and Dynamic Creative Optimization business.
Ycor, which owns ad tech firm Weborama, launched a last-minute counter bid to Amazon’s on June 7, slowing the retail giant’s ad tech plans. But the delay was to be short-lived.
Amazon’s initial bid was for a reported $30 million, though documents filed in a New York Court on June 17, stated that Ycor was willing to raise its initial bid multiple times, by a total of at least $15 million, while Amazon raised its own bid by $7.5 million. No official disclosure of the final price has been given.
Regardless, Amazon has still managed to buy two of Sizmek’s core products for a song. Although the final bid is likely now higher than the initial price tag, $30 million is roughly a third of what Sizmek’s annual revenues are, according to sources with knowledge of the business.
What Amazon would stand to gain from the buyout, has been well documented. But there is just as much talk in the ad tech industry as to what challenges the retail giant may face after buying the Sizmek ad server in particular.
Have a look of the entire article on digiday.com