Dentsu Inc. Strengthens Video Advertising Services in Germany Through Corporate Acquisition

The text of the Dentsu Inc. news release distributed on December 17 is as follows.

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December 17, 2018

― Agreement Reached to Acquire 70% Stake in VideoBeat, a TV/Online Video Advertising Marketing Company ―

Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Toshihiro Yamamoto; Capital: ¥74,609,810,000) has reached an agreement with the shareholders of Videobeat Networks GmbH (Headquarters: Hamburg, Germany; CEO: Christoph Gaschler; hereinafter "Videobeat") through its overseas headquarters, Dentsu Aegis Network (*), to acquire 70% of Videobeat's shares. The agreement also includes an option for the Dentsu Group to make Videobeat a wholly-owned subsidiary in the future. CEO: Christoph Gaschler, hereinafter "Videobeat") and an option for the Dentsu Group to make it a wholly-owned subsidiary in the future. Completion of this acquisition is subject to approval by German regulatory authorities.

Founded in 2011, Videobeat's key feature is its proprietary platform that enables real-time measurement of TV advertising effectiveness using metrics similar to those for online video ads. By setting and measuring metrics such as traffic to advertisers' websites and conversions, it facilitates adjustments to media strategies and commercial content to maximize ROI.

Beyond its Hamburg headquarters, the company maintains offices in Berlin, Germany, as well as in London, Paris, and New York. With a current workforce of 72 employees, it is advancing sophisticated marketing services that leverage video across multiple devices, including television and online platforms.

Going forward, we will accelerate our growth strategy by creating synergies through collaboration between VideoBeat and our group companies operating in Europe.

The impact of this transaction on the consolidated results for the fiscal year ending December 2018 will be minimal.

*Dentsu Inc. Aegis Network (Headquarters: London, UK), which oversees Dentsu Inc.'s overseas operations, conducts business globally centered around 10 global network brands. These 10 brands are: Carat, Dentsu (Dentsu Brand Agencies), dentsu X, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope, and Vizeum.

 

【Videobeat Networks Overview】
Company Name: Videobeat Networks GmbH
Headquarters: Hamburg, Germany
Established: December 2011
Shareholder Structure: After acquisition, Dentsu Inc. Aegis Network: 70%
Revenue: €5.33 million (approx. ¥680 million) (Fiscal Year Ended December 2017)
Representative: Christoph Gaschler (CEO)
Number of Employees: 72
Business Description: Provides one-stop services including media planning, production, and effectiveness measurement for TV advertising and online video advertising

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2018/1217-009699.html