Pandora is paying $145 million for the company, with a minimum of 50 percent of that paid in cash and the remainder to be paid in either cash or stock at Pandora’s discretion.
Pandora in January said it expected to save approximately $45 million annually thanks to a combination of job cuts and other cost-saving measures. With today’s news, it’s clear that Pandora wasted little time in reallocating its newfound funds.
AdsWizz is dedicated solely to selling digital audio ads. In purchasing the company, Pandora aims to make it easier for publishers to monetize their inventory and for advertisers to buy and measure campaigns. In other words, Pandora will service its own platform as well as those operated by rivals to expand revenue opportunities.
AdsWizz CEO Alexis van de Wyer will stick around to run the company which will become a subsidiary of Pandora upon closing.
Pandora CEO Roger Lynch said that since joining the company six months ago, he has highlighted ad tech as a key area of investment. With the purchase of AdsWizz, Lynch said Pandora takes an important step to advance that priority and accelerate their product roadmap.
The transaction is expected to close in the second quarter of this year pending customary regulatory approval.