AOL agreed on Wednesday to buy Adap.tv, a video advertising platform, for about $405 million in cash and stock, in its biggest acquisition since becoming an independent company.
Under the terms of the deal, AOL will pay $322 million in cash and about $83 million in stock. That’s more than the $315 million that it paid for The Huffington Post two and a half years ago.
Video has been one of the biggest points of focus for Internet media companies for some time, with its ability to command higher ad rates. AOL has been focusing on amassing sources of video content as part of its bet on consumers increasingly watching video online instead of on TV.
“AOL is a leader in online video and the combination of AOL and Adap.tv will create the leading video platform in the industry,†Tim Armstrong, AOL’s chairman and chief executive, said in a statement. “The Adap.tv founders and team are on a mission to make advertising as easy as e-commerce and the two companies together will aggressively pursue that vision.
Founded in 2007, Adap.tv counts as investors Spark Capital, Redpoint Venture and Gemini Israel Fund.
The deal is expected to close by the end of September.
