Pandora’s last major acquisition of another company, ticketing firm Ticketfly, didn’t go so well: bought for $450m in October 2015, then sold for $200m less than two years later.
The company will be hoping for a better outcome from its latest deal: a $145m acquisition of digital audio ad-tech company AdsWizz. Pandora will pay at least 50% of the price in cash, and says that the acquisition will boost the advertising business of its free streaming tier.
“Since I joined Pandora six months ago, I have highlighted ad tech as a key area of investment for us. Today we took an important step to advance that priority and accelerate our product roadmap,” said CEO Roger Lynch in a statement.
“With our scale in audio advertising and AdsWizz’s tech expertise, we will create the largest digital audio advertising ecosystem, better serving global publishers and advertisers — while improving Pandora’s own monetisation capabilities.”
For its part, AdsWizz CEO Alexis van de Wyer, said that it’ll be business as usual for the acquired firm.
“We will continue to operate independently, under the AdsWizz brand, and Pandora is committed to supporting our core business, and is also investing resources in technology development that will benefit ALL our customers and partners, including publishers, broadcasters, podcasters, advertisers, agencies, and ad networks,” he said.