Adaptive Medias and Adsupply merge to combat ad-blocking

US companies Adaptive Medias, a mobile video advertising firm, and AdSupply Inc., a programmatic advertising platform, plan to close a merger deal during Q2 2016 as part of efforts to strengthen the defences of publishers and marketers against ad-blocking. Under the new agreement, Adaptive Medias will pay $8m to AdSupply Inc for a 47% share in the new company, while the remaining 53% will be owned by shareholders of AdSupply Inc. As Adobe and PageFair report that ad-blocking was responsible for an estimated $22bn in lost advertising revenue during 2015, up 41% from 2014, executives predict that the first full year as the new Adaptive Medias could help to generate revenues of $30m and therefore ensure the company can compete in a market likely to undergo consolidation.
According to its letter of intent, Adaptive Medias said it would pay AdSupply $8 million in cash and newly issued restricted stock. As a result of the deal, AdSupply shareholders would own 53 percent of the company, and Adaptive Medias' shareholders would own the remaining 47 percent. The deal, in which the two companies would merge under the name Adaptive Medias, is expected to close during the second quarter of 2016.