Friday, July 11, 2014

Facebook: LiveRail Acquisition Is A Small Part Of A Bigger Trend

This article was originally published by Seeking Alpha on July 3, 2014

By Sarfaraz A. Khan.
Summary: Facebook has recently announced the acquisition of LiveRail for reportedly between $400mn and $500Mn.LiveRail is one of the biggest players in the online video space that offers its unique real time bidding platform ecosystem. This is part of a bigger trend fueled by the growth in advertising spending on online videos, as pointed out by online video research analyst Paul Ritter.
On Wednesday, Facebook announced that it has decided to acquire a seven-year-old video-ad company LiveRail in an effort to increase its foothold in the video ad business. Facebook did not disclose the terms of the deal but according to TechCrunch, the start-up came with a price tag of between $400 million and $500 million.
LiveRail calls itself the "leading monetization platform for publishers." The company helps its clients in selling their video ad inventory. Some of its leading customers include Univision, Major League Baseball (, PBS, Condé Nast Digital, CBS Interactive and ABC Family.
Overall, the company has hundreds of customers and delivers more than 7 billion video ads per month. According to ComScore, in May 2014, LiveRail's video ads reached out to 37.2% of Americans, making LiveRail the third biggest player in the industry, ahead of AOL and Google and behind BrightRoll and Specific Media.
LiveRail's biggest strength is its real time bidding platform ecosystem through, which it selects the best-priced ads for marketers from the video ad inventory of its publishers. The company also offers …. Read full article at Seeking Alpha