Thursday, March 30, 2023
HomeLatest TrendsWhy regulators’ scrutiny of Big Tech is rekindling buyers’ interest in ad...

Why regulators’ scrutiny of Big Tech is rekindling buyers’ interest in ad tech 

Last year was a muted one for ad tech exits compared to the rampant activity of 2021, when the pop of champagne corks abounded with deal volume driven by initial public offerings plus mergers and acquisitions. 

Investment bank LUMA Partners’ 2022 Market Report shows the number of deals in the sector almost halved — from 90 to 56. Albeit, the wider digital media and marketing category actually increased by 2%, from 400 in 2021 to 406 in 2022.

The causes for this overall drop in the number of exits are well evidenced: a downbeat global economic outlook impacting overall ad spend, unprecedented M&A and public listings in 2021. 

Add to this how the decline in the valuation of those that debuted on the public markets the previous year (down 59% on average, according to LUMA Partners) led to a reduced appetite among potential suitors. Such dynamics meant that deals in the sector were either deferred or outright reconsidered. 


However, from the comparative low, there are dynamics starting to rekindle a potentially new flow of deals, namely the opportunities posed by the potential disruption of Big Tech.

Elsewhere, there is also the potential for taking ad tech companies on the public markets (many of which are priced significantly below their IPO prices). 

And for those publicly-traded ad tech companies that want to future-proof their Wall Street narratives, purchasing the right bit of tech can help to shore up their stock price.


Read the complete post here >>

By: Ronan Shields


Most Popular

Recent Comments