SOLD: Microsoft acquires Xandr from AT&T in a billion dollar deal
Microsoft has announcing that it has entered an agreement to acquire Xandr from AT&T.
Xandr provides a data-enabled technology platform with tools that help power a diverse ecosystem connecting marketers and media owners through first-party, data-led advertising solutions across its network.
AT&T agreed to sell its Xandr division to Microsoft, a long-expected divestiture after the carrier decided digital advertising wasn’t central to its operations. The deal is valued at about $1 billion, according to the LA Times.
"As the digital landscape evolves in a post-cookie world, Microsoft and Xandr together will help shape the digital ad marketplace of the future," says Mikhail Parakhin, president, web experiences at Microsoft.
"One that respects consumer privacy preferences, understands publishers’ relationships with consumers and helps advertisers meet their goals. Microsoft and Xandr have a shared vision and complementary strengths to empower the open web, where everyone can thrive and do so in a way that is consistent with our commitment to strong data governance and consumer privacy practices," he says.
With Xandr, Microsoft can accelerate the delivery of digital advertising solutions for the open web by combining Microsoft’s audience understanding, technology and global advertising customer base with Xandr’s large-scale, data-driven platforms for advertising.
- Improved activation and advertising results with Xandr’s cross-screen, first-party data-centred buying platform, Xandr Invest
- Strengthened monetisation for publishers through larger first-party data access and a full funnel marketing offering with Xandr Monetise, which includes a leading video solution, empowering content and media owners to unlock the full value of their inventory
- Increased advertiser and publisher value with Microsoft’s global native ad buying solution, the Microsoft Audience Network, by helping improve ad performance while providing access to global supply
- Enhanced retail media solutions with PromoteIQ for reaching audiences across the open web and improving the economic engine for retailers while enabling them to own their data and customer relationships
- Accelerated Microsoft Customer Experience Platform capabilities by enabling marketers to reach high-value prospects across the open web, further enhancing their ability to deliver reach and ROI through connected experiences
"We greatly admire the work Xandr has done and look forward to our collective opportunity to make Microsoft the media partner of choice for the open web," says Parakhin.
The sale is part of a broader portfolio reshuffling after AT&T shifted its DirecTV operations to a joint venture with TPG, and its WarnerMedia unit is slated to merge with Discovery Inc. and become a new independent company.
Closing of the transaction is subject to customary closing conditions including regulatory review.