OAKLAND, CA (CelebrityAccess) — Music streaming service Pandora announced that it is ramping up its digital advertising push with the planned acquisition of digital audio advertiser AdsWizz.
The addition of AdsWizz will upgrade Pandora’s ad tech capabilities, provide its advertisers with greater audience reach, and expand the company’s revenue opportunities, Pandora said.
The transaction, which is expected to close in the second quarter of 2018 was worth $145 million, which Pandora agreed to pay in a combination of at least 50% cash and the remaining 50% in cash or stock.
Once the deal closes, AdsWizz will become a subsidiary of Pandora with the company’s current CEO Alexis van de Wyer remaining at the helm of AdsWizz.
“For the last ten years, our mission at AdsWizz has been to enable the global monetization of digital audio by building innovative advertising technologies for music streaming services, digital broadcasters, and podcasters. We believe in providing value to all stakeholders — brands, publishers, and listeners — through engaging and well-targeted advertising experiences,” said van de Wyer, the CEO of AdsWizz in a press statement. “Now is the time to combine forces with Pandora, one of the leaders and pioneers in digital audio, and accelerate our ability to provide solutions that meet the increasingly sophisticated needs of advertisers and digital audiences.”
The deal reflects Pandora’s reliance on advertising revenue in its current business model, despite the recent rollout of Pandora’s subscription services as it squares off to compete with rivals such as Spotify and Apple Music. In its final earnings report last year, Pandora revealed that in Q4 2017, the company generated $297.7 in advertising revenue and just $97.7 million from its subscription service.
AdsWizz clients include Spotify, Deezer, TuneIn, and Global, as well as major internet providers such as Cox, Verizon, Omnicom, and Rogers, according to the company’s website.