Opera has announced today the acquisition of Los Angeles-based mobile video ad platform AdColony. The Norwegian giant will pay $75 million cash and ‘additional variable cash and/or stock consideration of up to $275 million’, according to the financial statement submitted to the Oslo Stock Exchange.
The acquisition which is expected to finalize by the third quarter will make Opera the leading mobile ad platform in the world, reaching over 700 million consumers via AdColony and Opera’s own mobile advertising subsidiary Opera Mediaworks combined.
AdColony claims its customers include Fortune 500 brands, performance advertisers and more than 70 percent of the world’s top grossing app publishers. “AdColony’s team, technology and execution will elevate Opera Mediaworks’ already strong position in the mobile advertising industry. The combination will deliver an even better results-oriented, end-to-end offering for brands, agencies and publishers globally,” said Mahi de Silva, CEO, Opera Mediaworks.
Following the acquisition, AdColony will continue supporting its existing customers. AdColony CEO Will Kassoy will also take on the additional role of Chief Marketing Officer of Opera Mediaworks.
He said they are excited to be part of ‘Opera Mediaworks’ renowned global organization and look forward to unlocking tremendous synergies together.’
Mobile video advertising is the fastest-growing segment in digital advertising. Global mobile advertising spending is forecast to reach $18.0 billion in 2014, and $41.9 billion by 2017. Gartner predicts that display formats will make up most of the revenue, but video will show the highest growth.