21st Century Fox (NASDAQ:FOX) Is Ready To Seal an Acquisition Deal with TrueX

According to the latest news, 21^st Century Fox (NASDAQ:FOX) has sealed a deal with TrueX Media, an online advertising company, to acquire the latter for a total of $200 million. TrueX is a technological advertising company that replaces the traditional advertisements with interactive video ads. This acquisition will help 21^st Century Fox (NASDAQ:FOX) to make the interactive ads at its own digital platforms.

ZenithOptimedia, a research firm, published a report recently, according to which, Television, which was the largest medium for advertising for quite a while, has reached its peak. The report further showed that this medium will see a sharp decline in the coming years, for the digital platform is gaining popularity with each passing day. With this in mind, let’s now analyze the latest trends and developments in the advertising sector.

TrueX was established back in 2007 in order to provide the advertisers with an opportunity to engage in digital and content advertising. This corporation gives the users an option to select its ad units in return for the usual advertisements. The advertisements of TrueX are only completed by the active participation of the users. The company records the engagement metrics in order to check for the results.

What is interesting to note here is that fact that TrueX is in contact with the media companies, such as Tribune and Pandora, and it provides advertising space on their platforms. As for the advertisers, it includes big multinational companies, including Microsoft, Vida, Apple, Disney, Kraft, Coca-Cola, and Nestle. Rumors have it that Viacom is also looking forward to implementing the ad technology of TrueZ across its entire platform. It is important to mention here that TrueX will continue to operate as an independent company even after the acquisition.

The advertising industry is on a roll, and the advertisers are willing to spend huge amounts of money on the ads. According to market estimates, the total spending on advertising in the region of North American spiked up by 4.60 percent in the year 2014, partially due to the mid-term elections and Winter Olympics. The analysts are of the view that this region will continue to witness an increase in the advertising expenditure in the coming years.

As of now, around 40 percent of the total advertising money is spent on Television ads. However, the figures are expected to drop to 37 percent by the end of the year 2017. On the other hand, the Ad spending via other platforms is likely to increase, especially via cell phones and digital desktops.

Right now, the total ad spending on digital platforms has recorded to be around 18 percent. According to the reports of TrueX, around 52 percent of the customers avoid ads, and hence, there is a need to design friendly ads for customers.

As for the stock price of 21^st Century Fox (NASDAQ:FOX), the company started its stocks at $37.77 and closed at $37.30, during the last trade day. The company has a beta of 0.99 and a dividend yield of 0.67 percent.