MediaMath Files For Bankruptcy After Acquisition Talks Fail

MediaMath Files For Bankruptcy After Acquisition Talks Fail

Demand-side platform (DSP) MediaMath has filed for bankruptcy protection after talks with potential buyers broke down.

MediaMath launched in 2007 and was one of the original DSP providers in the programmatic market. The business had raised more than AU$900 million in funding over its more than 15-year history.

However, the company had reportedly been beset by financial issues in recent years after the business appeared to miss its acquisition window and did not file for public listing. More than 3,500 brand and agency customers used the platform but it was forced to recapitalise last year with Searchlight Capital, with the startup selling a controlling stake in the business to the private equity group in exchange for $150 million in fresh capital and debt refinancing.

Following the deal, MediaMath’s shareholders, early investors and co-founders, including Zawadzki, lost all of their equity in the company. Plus, the business had taken an AU$225 million credit facility from Goldman Sachs in 2017 that it was in the process of paying back.

MediaMath staff were told on 30 June that the business would be shutting down its operations over the coming months and that the platform would no longer be available to use going forward. Most of the staff have reportedly been made redundant with a small number remaining to take care of basic functions during the bankruptcy proceedings.

The company filed for Chapter 11 bankruptcy proceedings and will see a court help the business pay off its debts and reorganise its operations. Once remaining wages and salaries have been paid, the main outstanding secured lenders — in this case, Goldman Sachs — will be reimbursed before unsecured creditors, such as vendors and suppliers will be paid if there is any money remaining.

There remains a possibility that bits of the MediaMath business might be put up for auction and could be snapped up by rivals or an enterprising entrepreneur looking to get into the programmatic game. Meanwhile, the company’s closure will likely see DSP rivals such as The Trade Desk and Google rushing to win accounts that were previously held by the company.




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