AT&T Is Making a Big Bet on Targeted Ads [telecom]

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The telco's spending spree could continue as it beefs up its advertising technology.

By Leo Sun

AT&T recently agreed to acquire digital ad exchange AppNexus for what is estimated to be $1.6 billion to $2 billion. The purchase will enable the telco to integrate AppNexus' network, which automatically matches advertisers with online publishers, into its wireless services, DirecTV, and newly acquired Time Warner properties.

AppNexus' top investors include advertising giant WPP, investment firm TCV, and News Corporation. The firm was valued at $1.8 billion after its last funding round in 2015, so the low end of purchase price estimates may reflect the challenges AppNexus faces from internet ad behemoths Facebook and Alphabet's Google. Research firm eMarketer expects Facebook and Google to control nearly 60% of the US digital ad market this year.