Searchlight Capital

MediaMath Files for Bankruptcy After Failed Acquisition Talks

MediaMath, a long-running demand-side platform founded in 2007, announced it will file for bankruptcy after acquisition talks with Viant and Verve Group collapsed. The company had raised more than $600 million and served over 3,500 brand and agency customers, but faced ongoing financial challenges and a failed recapitalization with Searchlight Capital. Staff and partners were notified that operations would wind down, with platform access ending by June 30. MediaMath later disclosed a Chapter 11 filing (not Chapter 7), with Goldman Sachs as a secured lender. Neil Nguyen, a former Sizmek/DG executive, had been installed as CEO to drive growth and an exit strategy, but the process did not succeed. The situation creates a vacuum in the DSP market, likely benefiting rivals such as The Trade Desk, Viant, and Google, while potential asset sales could occur at auction.

MediaMath's Struggles Highlight AdTech's Shifting Landscape

AdExchanger's March 2, 2023 roundup centers on MediaMath's exit from its decade-long VC tether after selling a stake to private equity firm Searchlight Capital, wiping out the equity of founders, early investors and employees. Insider's deep-dive portrays a path from near-greatness to diminished prospects, with CEO Joe Zawadzki pursuing a billion-dollar exit; potential buyers including IBM and Singtel were close to a deal, but none materialized. The DSP market was framed as The Trade Desk's race, with others expected to finish behind. The piece also notes iOS ad spend fell in 2021 due to Apple's ATT, then recovered in 2022; Singular says iOS now accounts for roughly half of UA budgets on its platform, after a 2020 split of about 55% iOS/45% Android and a 36% iOS share by January 2022 as developers adapt via SKAdNetwork. The roundup closes with references to ketamine/ADHD ads on social media and several executive hires across the ad tech ecosystem.

Darren Glatt: Avoiding ‘Zombies’ When Investing In Ad Tech

In this AdExchanger Talks podcast from August 8, 2019, Darren Glatt, a private equity investor and MediaMath board member, discusses the current state of the ad tech landscape and MediaMath's growth potential over the next two to three years. Glatt notes that while some ad tech players have collapsed into receivership, a group of independent companies remains capable, with MediaMath positioned among them. He highlights that he led Searchlight Capital’s $225 million investment in MediaMath, which closed about a year prior to the interview. The conversation also touches on how private equity approaches value creation and broader industry questions, including whether the US will break up big tech and how telecoms may influence TV markets.