Israeli Ad-Tech Firm Perion Sold to Indian Company for $420 Million
Translated & summarized from TheMarker by baba
Israeli ad-tech company Perion Network has been sold to India's Affle for $420 million, marking a significant drop from its previous valuation. The company's value plummeted by 80% since April 2023, largely due to the end of its lucrative partnership with Microsoft, which previously constituted 40% of its revenue. Despite efforts to expand into new digital advertising sectors, these ventures failed to offset the financial impact of losing the Microsoft deal.
The story in 5 lines · by baba
- Perion Network was sold to India's Affle for $420 million.
- The company lost 80% of its value since April 2023.
- Perion's decline was driven by the end of its partnership with Microsoft.
- The Microsoft deal previously accounted for 40% of Perion's revenue.
- New ventures in CTV and digital billboards failed to compensate for the loss.
Perion Network, led by CEO Tal Jacobson, has been acquired by Indian company Affle for $420 million, approximately 1.32 billion shekels. The sale comes after Perion Network lost about 80% of its value since April 2023. The company struggled to recover following the termination of its partnership with Microsoft, where Perion distributed Microsoft's Bing search engine to its clients. In mid-2023, Microsoft announced a change in its pricing algorithm for advertising revenue generated from distributors like Perion. This partnership had accounted for approximately 40% of Perion's revenue.
Perion had simultaneously ventured into new sectors, including advertising on smart TVs (CTV), retail media, and out-of-home digital advertising, such as digital billboards. However, these new areas were insufficient to compensate for the loss of the Microsoft collaboration.
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