As more people switch to online services, marketing dollars are moving to digital platforms like Facebook, Google and YouTube, making video advertising a lucrative market.
Unruly, which was bought by News Corp in 2015 for 114 million pounds, helps make videos and interactive content that can be embedded into articles or published to social media.
The deal gives London-listed Tremor access to News Corp’s publications and vast network of clients and helps News Corp to focus on its core news business.
Tremor said on Monday it would issue about 6.91% of its voting share capital to News Corp, the owner of the Wall Street Journal and The Times, as part of the transaction.
News Corp will not be able to sell its shares in Tremor during an 18-month lock up period. Tremor has also committed to spend a minimum of 30 million pounds ($39 million) advertising with News Corp over three years.
“The sale of Unruly marks an important step in our strategy of simplification at News Corp, while we expect it to yield ongoing financial benefits,” Chief Executive Officer of News Corp, Robert Thomson, said in a statement.
London-based Unruly was founded in 2006 and has more than 1.2 billion unique monthly views on its ads. It also has a data analytics unit that studies trends focused on advertisements’ emotional impact.
Excluding deal costs, Israel-based Tremor expects Unruly to break even this financial year.
Tremor shares rose more than 4% after the announcement.
($1 = 0.7644 pounds)
Reporting by Pushkala Aripaka in Bengaluru; Editing by Saumyadeb Chakrabarty, Uttaresh.V, Kirsten Donovan
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