News Corporation has acquired a majority stake in the UK’s video ad network Utarget, which will be merged with Rupert Murdoch’s existing online ad network .Fox Networks.
Utarget will be rebranded Utarget.Fox and will work with the Fox Interactive Media Audience Network, which like .Fox Networks is part of Fox International Channels.
As part of .Fox Networks, Utarget will work with News Corp websites such as MySpace, Photobucket, IGN, FOXSports.com, RottenTomatoes, AskMen and Flektor.
As well as News Corp sites and third-party media owners and advertisers, Utarget will offer its own online ad network Premium Video Advertising Network, which includes more than 600 UK websites.
Utarget was founded by its chief executive Phil Cooper, who will stay on in his position following the acquisition.
The London-based ad firm is best known for high-impact subsites, also referred to as a BPU or banner-pop-unders. The company created a self-launching video player window that starts playing an ad only when the window comes into focus.
The video format runs spots of any length, in contrast to the 15 and 20-second pre-rolls usually placed on premium video. It also offers traditional pre-roll ads and mobile video ads.
Hernan Lopez, president and chief operating officer of Fox International Channels, said: “With Utarget.Fox, we can now offer innovative, brand-safe online video formats that advertisers can plan jointly with their TV buys.
“At the same time, the combination will add value to publishers, by giving them access to FIC’s and .Fox’s international advertiser base even if they don’t have video content.”
Utarget’s video products will be offered by .Fox and Fox International Channels’ online and television sales teams across Europe, Latin America and Asia, on a global, regional, multi-territory or local basis. Fox owns channels such as FX in the UK and National Geographic.
Cooper said: “We are very excited about the prospect of expanding the reach of Utarget’s technology worldwide by taking advantage of News Corp’s global reach as one of the world’s pre-eminent media organisations.
“The time is right to realise the exceptional opportunities coming from the convergence of TV and the internet.”
The acquisition of Utarget follows .Fox Networks’ launch into the UK just last week. The network, which was formed in May 2007, is seeking to rapidly establish itself and expand News Corp’s burgeoning online presence.
In February, News Corp announced second quarter pre-tax profits of $1.39 billion (£705 million), up 9.2% year on year.
The Murdoch media empire grew in all but two of its eight operating divisions, filmed entertainment and television.
Group revenues grew 9.5% year on year to $8.59 billion, with cable network programming revenues up by a third to $1.24 billion.
The “Other” division, which includes MySpace and other online assets, reported an increase in operating income from $1 million to $23 million on revenues up from $518 million to $798 million (see News Corp Profits Up In Q2).
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