There is a growing drift in private equity funds either investing in ad-tech companies or making outright acquisitions in efforts to scoop up undervalued assets, according to Chris Kane, founder at New York-based programmatic consultancy Jounce Media.
“In the years 2010 and 2011 when the likes of Alphabet Inc.’s Google Inc. and Yahoo! were making enormous bets in the ad-tech space, private equity investors thought this was crazy,” he said. “Now that valuations have come down to earth, deals feel more reasonable for private equity investors.”
JC Uva, managing director at New York-based strategic advisory firm MediaLink, agreed, adding that valuations had come down to the point where buyout funds can be more opportunistic.
“Now that some of the euphoria around ad tech has calmed down, [investors] are starting to get their heads around where the business models are today and where they can go,” he said in an interview.