The streaming pure-play says the addition of AdsWizz will upgrade its ad tech capabilities. This is not an unexpected move as Pandora moves more into programmatic buying and away from feet-on-the-street selling to cut down on cost, as we’ve learned from their earnings calls.
AdsWizz connects buyers and sellers in the digital audio space with ad insertion and programmatic technology. The company is headquartered in San Mateo, California, with a presence in 39 countries.
Pandora CEO Roger Lynch said, “Since I joined Pandora six months ago, I have highlighted ad tech as a key area of investment for us. Today, we took an important step to advance that priority and accelerate our product roadmap. With our scale in audio advertising and AdsWizz’s tech expertise, we will create the largest digital audio advertising ecosystem, better serving global publishers and advertisers — while improving Pandora’s own monetization capabilities.”
At the closing of the transaction, AdsWizz will become a subsidiary of Pandora, with AdsWizz CEO Alexis van de Wyer remaining the CEO. Pandora agreed to pay $145 million in a combination of cash and stock, with a minimum of 50 percent paid in cash and the remainder to be paid, at Pandora’s election, in either cash or stock (with the stock conversion based on the dollar-volume-weighted average trading price for Pandora’s common stock for 10 trading days prior to the closing), subject to certain price adjustments at and after closing.
