Sizmek recently shocked the ad tech industry when they filed for bankruptcy. The company had problems finding new investors, becoming profitable and consolidating subsidiaries. Find out all the details in this weeks video below!
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At the end of March, Sizmek filed for bankruptcy after failing to find a new investor.
Sizmek’s assets range between $100-$500 million with liabilities in the same range.
The company has outstanding debts to Index Exchange, OpenX, PubMatic & AppNexus in the millions.
It shows how hard it is to front ad costs before getting paid by marketers.
Sizmek owes over $1 million to Google, Rubicon Project, Integral Ad Science, Sovrn, LiveRamp and more for campaigns delivered.
From 2016-2017 Vector Capital spent around $270 million on Sizmek and Rocket Fuel.
The idea was to consolidate both companies and to sell it to a buyer like Telco.
However, Sizmek struggled to turn profitable and additional investments into the company was closed down.
Sizmek already comprised of Peer39, PointRoll, and StrikeAd. Consolidating all subsidiaries together with Rocket Fuel seemed impossible.
Sizmek wanted to reshape its support team to understand multiple areas of the business.
However, converting specialists into specific areas to support their ad server and DSP took lots of time and made clients uneasy.
Although the Sizmek brand is coming to an end, they still own the largest ad server share besides Google.
Other companies now have the option to buy up Sizmek’s assets, point solutions, and ad server footprint.
Source: https://adexchanger.com/online-advertising/sizmek-files-for-bankruptcy-and-faces-an-uncertain-fate/
Marketing MBA and Global Marketing Manager at MonetizeMore.
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