TechCrunch was the first to break the news Saturday morning that Comcast is set to purchase FreeWheel, the go-to-ad serving platform since 2007 that sends streaming ads alongside the TV networks that stream content online.
FreeWheel is designed to automatically allocate ad inventory, keep track of ad revenue, and accounts for revenue splits between Web sites and content owners. Due to its tracking of the statistical data of ads and successful placement it can help marketers place their ads more cost effectively. Its marketing analysis design can be thought of as an extension of the Pareto theory, which tracks the cause of certain activity profile to produce the most successful results in numbers.
The deal will be officially announced once the rumored $320 million price and terms have been completed according to TechCrunch.
This deal once it is closed will be a provider of ads with one of the biggest distributors, Comcast, of content online and off. Recently, Comcast acquired Time Warner Cable for $45 billion.
FreeWheel has acquired such client luminaries as NBC, FOX, ESPN, Turner and recently added Amazon. When you are perusing through the Internet, you will see your favorite products streaming alongside the content that you are reading. If you were viewing books on Amazon, you will see those titles stream alongside the article you are reading.
This deal will place Comcast head-to-head with Direct TV satellite, a current client of FreeWheel.
FreeWheel generated around $35 million in revenue in 2013, according to a source familiar with the negotiations.
By comparison FreeWheel, is the video equivalent of DoubleClick, the display ad company acquired by Google in 2008 for $3.1 billion. FreeWheel was founded by some of the former Double-Click executives.
In other deal making, Netflix will be paying Comcast for ‘direct access to Comcast’s broadband network’, which will provide much smoother service for those frustrated by Netflix’s recent slowdown in a deal of undisclosed financial terms in late Feb.
To see other articles on purchases and joining together of technology companies see the list below in Author’s suggestions and view the video atop this article with FreeWheel co-founder and CEO, Jon Heller.
Twitter Victoria Wagner@victoriaross888