21st Century Fox to Acquire Video Ad Company True[X]
The deal, for a price tag believed to be near $200 million, comes after Fox co-COO James Murdoch earlier in the year joined the firm's board
21st Century Fox said on Wednesday that it has reached a preliminary agreement to acquire true[X] media, a video advertising company that specializes in consumer engagement and on-demand marketing campaigns.
Financial terms weren't disclosed, but it the price tag is believed to be approaching $200 million, according to the Wall Street Journal.
Fox co-COO James Murdoch, the son of chairman Rupert Murdoch, earlier in the year joined the board of true[x].
"Closing of the transaction is subject to the completion of a definitive agreement and other customary closing conditions," the companies said.
Founded in 2007, true[x] offers online publishers and advertisers a marketing platform for premium content in digital and on-demand environments. Following the acquisition, true[X] will continue to provide services to a wide range of TV clients, as well as streaming music and video companies, such as Pandora and DramaFever, among others. On the marketing side, the company’s client list includes Microsoft, Visa, Apple, Disney, Coca-Cola, Kia, Kraft, Macys, Nestle and Procter & Gamble.
true[X] will also work closely with Fox's Fox Networks Group "to drive engagement between brands and consumers on Fox’s proprietary digital platforms," the companies said.
“The connections between brands and consumers have continued to evolve within digital video environments, and true[x] is at the center of this vital area of innovation,” said James Murdoch. “We’re thrilled at the opportunity to have true[x]’s talented team work with us as we set out together to create new experiences in what we believe is a very exciting time in digital video.”
“At Fox, we are constantly working to create ad experiences that empower marketers to reach consumers in new and more effective ways,” said Randy Freer, president and COO of Fox Networks Group. “We are excited about the opportunities true[X] brings with respect to enhancing ad engagement for consumers on our networks’ digital platforms.”
Added Joe Marchese, founder of true[X]: “As a creator and distributor of content, 21st Century Fox’s interests are very much aligned with our mission and vision to build technology to support a thriving digital video marketplace.”