Amazon buys Sizmek's ad businesses

Purchase comes months after Sizmek filed for bankruptcy.

Amazon: Sizmek units will operate separately for the time being
Amazon: Sizmek units will operate separately for the time being

Amazon has purchased Sizmek’s ad-serving and dynamic content optimisation businesses, the retail giant confirmed the news in a blog post on Friday (31 May).

"Sizmek and Amazon Advertising have many mutual customers, so we know how valued these proven solutions are to their customer base," Amazon said.

It said that, once the deal closes, Sizmek Ad Server and Sizmek DCO will operate separately from Amazon "for the time being".

"We look forward to working with the team and we’ll share more updates as we invent and create new opportunities to better serve our advertisers over time," Amazon added.

Sizmek has been selling off parts of its business after it filed for voluntary Chapter 11 bankruptcy in the US in March. At the time, Sizmek estimated that its assets were worth $100-$500m.

In April, Sizmek agreed to sell its data management and demand-side platforms to software company Zeta Global in a deal worth $36m.

The addition of Sizmek’s ad-serving capabilities will be a feather in the cap of Amazon’s advertising push.

The company has rolled out a variety of new video and search ad formats and measurement tools over the past year as part its ambition to compete with Google and Facebook.

As a result, Amazon is recording strong growth in its advertising business. The company’s "other" revenue segment, which is mostly advertising, grew 34% to $2.72bn in the first quarter compared with a year earlier.

A version of this story first appeared on Campaign Asia-Pacific

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