The RTL Group, a big European media company, announced on Thursday that it had purchased a 65 percent stake in SpotXchange, an online video advertising start-up.
The deal was the latest in the rapidly expanding online ad industry, particularly for companies that can automate the process of buying and placing ads. Video ads have become one of the faster-growing sectors of the industry, with double-digit gains each year.
Tech and media companies have moved to gain toeholds in the online video ad space, most recently with Facebook buying LiveRail this month, reportedly for $500 million.
RTL, which is majority-owned by Bertelsmann and says it produces about 9,000 hours of television programming each year, is moving to stake its claim with SpotXchange. Created in 2007, the Denver-based start-up has customers like The Atlantic, Hearst and Mail Online, with ads being shown to 335 million people on its platform each month.
Under the terms of the deal, RTL will pay $144 million for a 65 percent stake in SpotXchange, and could pay more if the online ad company meets certain performance targets. It will also gain three of five board seats at the start-up.
RTL has reserved the right to buy the rest of SpotXchange at some point in the future.
The deal is expected to close by the end of August.
RTL was advised by the investment bank McCafferty & Company.