OAKLAND, CA (CelebrityAccess) — Music streaming service Pandora buttressed the announcement of their family streaming subscription plan with the announcement that they had completed the acquisition of digital advertising technology firm Adswizz.
Per Pandora, the $145 million deal was closed primarily with cash, to the tune of $66.3 million, with an addition 9.9 million Pandora shares, as well as $5 million in performance-based incentive payments.
Following the transaction, Adswizz will continue to operate as a standalone subsidiary of Pandora, with the company’s current CEO Alexis Van De Wyer serving as head of the division.
Pandora’s plans to acquire the digital advertising service was first announced in March.
“Audio is the fastest growing format in digital advertising and the marketplace is rapidly evolving,” said Pandora CEO Roger Lynch . “Completing the acquisition cements our position in the future of audio, making us more ready than ever to serve publishers and brands worldwide.” LYNCH added, “As a publisher, PANDORA has long understood the value that a sophisticated advertising platform can bring to everyone in digital audio. We are the leader in this space, and we remain committed to serving all constituents in the ecosystem.”
While Pandora has increasingly fallen into line with its rivals in the streaming sector by introducing subscription tiers, the Adswizz acquisition shows just how important advertising revenue is to the company’s business. In their year-end earnings statement for 2017, Pandora revealed that in the final quarter of the year, $297.7 in advertising revenue and just $97.7 million from its subscription service.