Kargo eyes connected TV and video tech for future acquisitions

As featured on Axios

New York-based online ad exchange, Kargo, has pursued acquisitions to expand both within and beyond the platform, CEO Harry Kargman tells Kerry.

Why it matters: Kargo has acquired four companies since 2020 and has eyes on connected TV and other video tech businesses.

"I haven't made a CTV announcement yet," Kargman says when asked about future deals. "I think what we're doing with video is super interesting, and that's gonna have a major impact to the business."

State of play: These acquisitions have stemmed from Kargo's customers asking for "diversified, cross-screen scaled players" as they try to reduce their number of vendors, Kargman says.

By the numbers: Kargo turns 20 in January. It has about 400 employees, up from 220 in January 2021. The majority of that growth comes from the acquisitions — in particular, 135 employees from StitcherAds.

Kargo has not disclosed the price of individual acquisitions, except $64 million for StitcherAds. Adweek reported all four deals — Rhombus, StitcherAds, Parsec Media and Ziggeo — cost $75 million in cash and equity upfront, which does not include Ziggeo's full price based on performance.
Kargman says he evaluates his company's success based on net revenue, which surpassed $100 million last year. That figure grew 45% from 2020 to 2021 and is on track to grow 40% from 2021 to 2022.
But Kargo also has a goal of reaching $1 billion of total media pumped through its systems within the next couple of years, Kargman says.
Of note: Kargman told the Wall Street Journal last year about potential plans to go public "over the next few years." But there's no updated timeline.

Kargo eyes connected TV and video tech for future acquisitions

As featured on Axios

New York-based online ad exchange, Kargo, has pursued acquisitions to expand both within and beyond the platform, CEO Harry Kargman tells Kerry.

Why it matters: Kargo has acquired four companies since 2020 and has eyes on connected TV and other video tech businesses.

"I haven't made a CTV announcement yet," Kargman says when asked about future deals. "I think what we're doing with video is super interesting, and that's gonna have a major impact to the business."

State of play: These acquisitions have stemmed from Kargo's customers asking for "diversified, cross-screen scaled players" as they try to reduce their number of vendors, Kargman says.

Kargo has not disclosed the price of individual acquisitions, except $64 million for StitcherAds. Adweek reported all four deals — Rhombus, StitcherAds, Parsec Media and Ziggeo — cost $75 million in cash and equity upfront, which does not include Ziggeo's full price based on performance.
Kargman says he evaluates his company's success based on net revenue, which surpassed $100 million last year. That figure grew 45% from 2020 to 2021 and is on track to grow 40% from 2021 to 2022.
But Kargo also has a goal of reaching $1 billion of total media pumped through its systems within the next couple of years, Kargman says.
Of note: Kargman told the Wall Street Journal last year about potential plans to go public "over the next few years." But there's no updated timeline.

Kargo eyes connected TV and video tech for future acquisitions

As featured on Axios

New York-based online ad exchange, Kargo, has pursued acquisitions to expand both within and beyond the platform, CEO Harry Kargman tells Kerry.

Why it matters: Kargo has acquired four companies since 2020 and has eyes on connected TV and other video tech businesses.

"I haven't made a CTV announcement yet," Kargman says when asked about future deals. "I think what we're doing with video is super interesting, and that's gonna have a major impact to the business."

State of play: These acquisitions have stemmed from Kargo's customers asking for "diversified, cross-screen scaled players" as they try to reduce their number of vendors, Kargman says.

Kargo has not disclosed the price of individual acquisitions, except $64 million for StitcherAds. Adweek reported all four deals — Rhombus, StitcherAds, Parsec Media and Ziggeo — cost $75 million in cash and equity upfront, which does not include Ziggeo's full price based on performance.
Kargman says he evaluates his company's success based on net revenue, which surpassed $100 million last year. That figure grew 45% from 2020 to 2021 and is on track to grow 40% from 2021 to 2022.
But Kargo also has a goal of reaching $1 billion of total media pumped through its systems within the next couple of years, Kargman says.
Of note: Kargman told the Wall Street Journal last year about potential plans to go public "over the next few years." But there's no updated timeline.