Wednesday, 2 July 2014
Facebook buys Video Ad platform LiveRail. Details undisclosed (but it was 400-500 million). Yippee for Streamabout!
So Facebook is still on the acquisition trail.
It's just agreed to buy Liverail, a video ad advertising service with the dreadful logo.
Started in 2007, it had revenues of 100 million usd last year and what it does is bring video ads to market.
Exactly as Streamabout does - creation of video and placement.
There had been talk of Liverail going for an IPO this year but that's clearly off the table. Facebook too had been building video ad platforms to sell into its own customer base but that too has resulted in the acquisition.
Facebook in essence has bought a video ad platform with revenue.
And that's the problem - being both a buyer and seller of advertising.
If Liverail now are owned by Facebook, then presumably they'll push more ads onto Facebook or at least, have a conflict of interest. Perhaps that cuts across their whole independence but then, if you're buying impressions do you care? Probably not.
Other publishers, the former clients of Liverail, may not be too pleased either.
Details weren't disclosed but I heard in the pub (ie on good authority) it was 400-500 million usd. Not bad for a 7 year old business.
And another good day for Digital Online Video. Like us.