Observed Signal · Jun 17, 2024 · M&A · Source: Marketecture · Impact: 4/5 · Sentiment: Negative
Oracle Exits Ads; Major AdTech M&A Moves
Marketecture’s weekly digest centers on a wave of ad-tech activity anchored by Oracle’s exit from the ads business after roughly $3 billion in acquisitions. The division had previously generated over $2 billion in revenue, with about $300 million in ad revenue in Q4 FY2024. The note highlights consequential consolidations: Equativ (formerly Smart) and Sharethrough will merge to gain greater US scale; MadHive is acquiring Frequence to expand omni-media planning capabilities; Scripps is adopting The Trade Desk’s OpenPass for CTV to enable email login. The piece also spotlights HIRO, a new identity product designed to unlock addressability from first‑party data, and references ongoing shifts in privacy, measurement, and platform strategy across the industry. These developments illustrate a period of aggressive consolidation and identity-focused innovation in ad tech.
Oracle’s exit from ads and multiple notable ad-tech mergers/acquisitions indicate significant industry shifts.
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Key Takeaways & Evidence Grounding
- Oracle exits the ads business after spending about $3B on acquisitions.
- Oracle's ad unit previously generated over $2B in revenue.
- Q4 FY2024 Oracle ad revenue was around $300M.
- Equativ (formerly Smart) merges with Sharethrough to gain stronger US scale.
- Scripps adopts The Trade Desk's OpenPass for CTV, enabling login via email.
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Oracle Exits Advertising Business
Oracle has quietly exited its advertising business, announcing a wind-down during its quarterly earnings call. The ad segment generated about $300 million in revenue in its most recent fiscal year, and the wind-down has been underway for roughly three months with no disclosed timing for asset disposition or client transitions. The move follows a decade of acquisitions that built Oracle’s ad tech stack, including BlueKai (2014, ~$350 million) forming Oracle Data Cloud, and later purchases such as Datalogix, AddThis (2016, ~$200 million), Crosswise, Moat (2017, ~$850 million), and Grapeshot (2018, ~ $400 million), after which Data Cloud was rebranded as Oracle Advertising. The unit faced privacy and regulatory headwinds (GDPR, Cambridge Analytica) and legal pressures, including a 2022 class-action suit over trackers and significant internal headcount reductions. 2021 ad revenues were cited at around $2 billion, with an ~85% decline since then. The exit signals ongoing consolidation in the ad tech ecosystem.
AI Stocks Sink as OpenAI Revenue Misses Reported Figure
Shares of Nvidia, Oracle, CoreWeave and other AI-related companies fell on Thursday after details emerged about OpenAI's revenue. OpenAI told investors it reached roughly $50 billion in annualized revenue at the end of September, lower than the widely reported $68 billion figure. A person familiar with the matter said the $68 billion figure included gross revenue from partners, making it more comparable to Anthropic. OpenAI also highlighted 77% total run rate growth in Q3 and 107% growth in enterprise business. The company is preparing for a potential IPO, with a valuation of $852 billion, and is in early talks to raise around $30 billion in new funding.
Oracle leverages ChatGPT and Codex to transform workflows
Oracle reports that over 100,000 employees are using OpenAI's ChatGPT Work and Codex across departments such as talent acquisition, Oracle Applications Lab, and IT. These tools have reduced tasks that previously took days to minutes. The talent team built a market intelligence tool that compiles compensation and talent pool data in 15-20 minutes instead of 2-4 days. The Applications Lab created an ontology enabling plain-language queries to generate SQL, allowing business users to get instant reports. Site reliability engineers use Codex to resolve incidents faster. Executives emphasize human oversight, guardrails, and code ownership.
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