Jason Del Rey of Ad Age reports, "DG, a traditional-TV ad delivery company that moved into the online-ad space with last year's acquisition of MediaMind, has acquired semantic ad-targeting startup Peer39 in a deal that could reach $15.5 million in cash and stock. Peer39, which is based in New York City, will get $10 million up front in addition to approximately 357,000 shares of DG stock. The acquisition also includes a $2.3 million earn out." Read our previous coverage of Peer39 here.
Del Rey continues, "Founded in 2006, Peer39 has raised $27 million to date. So, no, the deal is not a win for its investors and, at the same time, gives credence to what many ad-tech observers have pointed out over the last couple of years: there's a plethora of venture capital being thrown at businesses that aren't actually businesses; at worst, they are features and, at best, products. Peer39 seems to be the latter, and DG will treat it as such, integrating it into the MediaMind online-ad-serving platform. Peer39 will also continue to make its targeting technology available on demand-side platforms and ad exchanges."
Image: Courtesy Peer39