We are thrilled to announce AOL’s acquisition of Adap.tv.
We first invested in Adap.tv in 2007. At the time, online video consumption was accelerating but monetization of these video views lagged behind. It was clear to us that there was a significant opportunity for a start-up building disruptive technology to address this problem of monetization. We met with a number of startups and while we were impressed with many of the entrepreneurs, the companies felt like traditional advertising networks and lacked differentiated technology.
About that time, we were introduced to Amir Ashkenazi. Amir was an accomplished entrepreneur having been the founding CTO of Shopping.com. We were immediately impressed by his vision for an online video monetization platform and subsequently invested in the company’s Series A and joined the board.
At first, Adap.tv was providing solutions to publishers helping them optimize yield from their ad network partners. Eventually the company evolved into a full platform enabling programmatic buying and selling of online video advertising. Adap.tv offers the most advanced programmatic solution in the market today and is fundamentally changing how video ads are bought and sold.
I think the AOL acquisition highlights the growing importance of online video as consumption of video shifts from traditional media channels to the Internet. Premium brand and performance advertisers are making very significant commitments to this category, especially as it becomes a core part of media buying plans. The acquisition also speaks to the strategic importance of programmatic buying and selling of advertising. AOL recognized Adap.tv represented the best opportunity for them to assume leadership in this increasingly important market.
We are thrilled for the entire Adap.tv team including founders Amir Ashkenazi and Teg Grenager. Their leadership and skill, in addition to that of the entire management team, was at the core of the company’s success and I am sure the primary motivation behind the acquisition. It was a pleasure working with the Adap.tv team and I can’t wait to watch their continued success!