Is the future of advertising networks in the hands of those that decide to build their own? Cox Enterprises must think so as it has shelled out a rumored $300+ million for Adify, a self-service ad network that enables publishers to build their own ad network.
According to paidContent, Adify had been on the scout for investment funding but instead found a buy-out deal even more tempting.
Cox, long an advocate of targeted advertising, the company can well afford an acquisition like this—particularly if it can find a way to blend the niche ad net power with its digital cable products while it continues to make money from third party
…Adify made about $7 million in revenues in 2007, and is on track to do around $35 million this year. By any standards, it is a very rich deal. Then, a juicy bit for the bankers: Adify did the deal without any banking representation. CEO Russell Fradin and COO/CFO did the deal themselves.
Adify’s 80 employees will continue to operate as an independent company and maintain existing clients such as Martha Stewart Living Ominimedia and Forbes, Inc.
Cox is already working on a joint initiative to develop an ad network for its Cox Communications cable division.