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MediaMath is an ad tech company that offers a DSP for digital media buying and management. The company filed for bankruptcy in July 2023 after failing to secure more funding or a buyer. The company shut off its platform, leaving its clients and staff stranded.
Let’s continue reading to know more about what really happened to MediaMath.
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What Is MediaMath?
MediaMath is an advertising technology company that provides a demand-side platform (DSP) for brands and agencies to buy and manage digital media across channels.
The company was founded in 2007 and was one of the original DSP providers in the programmatic market.
MediaMath claims to help more than 3,500 advertisers solve complex marketing problems and deepen customer relationships.
MediaMath is a global company with more than 500 employees and is based in New York City.
Is MediaMath Shutting Down?
MediaMath is not in business; it is shutting down. The company filed for Chapter 11 bankruptcy protection on Friday, July 3, 2023, after its acquisition talks with potential buyers failed.
The company’s platform was shut off the same day, leaving its clients without access to its services.
The company plans to wind down its operations in the coming months and pay back its creditors, who are owed more than $100 million.
What Happened To MediaMath?
It seems it has filed for bankruptcy protection after talks with potential buyers broke down.
The company reportedly owes over $100 million to its creditors, including other ad tech companies and publishers.
The company’s staff and clients received emails on Friday about the company’s plans to shut down operations in the coming months.
Friday’s shutdown of the MediaMath platform left brands and media agencies scrambling to find a new demand-side platform.
Last year, Searchlight Capital Partners gave the business a $150 million cash injection. Still, in exchange, they agreed to give up the majority ownership for new money and debt restructuring.
However, Searchlight seems to have stopped any more funding because of its financial troubles.
The Searchlight deal wiped out the stakes of MediaMath’s shareholders, early backers and founders, including Zawadzki.
Reports indicate that most 300-member staff have become redundant, with only a few remaining to oversee operations during bankruptcy proceedings.
It’s a sad end for a company that was once valued at over $1 billion and was one of the original DSP providers in the programmatic market.
Effects Of MediaMath’s Bankruptcy
MediaMath’s bankruptcy will cause a ripple effect throughout the online advertising industry.
MediaMath’s platform termination forced media buyers and ad operations personnel to quickly move their campaigns to other demand-side platforms over a holiday weekend.
The company’s suppliers enter Q3 knowing they may not receive payment for their bills soon.
In a Chapter 11 bankruptcy proceeding, the collections process can take years and does not guarantee payments to unsecured creditors.
While secured creditors, such as Goldman Sachs, will receive payment first, MediaMath’s supply partners, all unsecured, will likely receive only partial payment.
The Bottom Line
The company owes more than $100 million to its creditors, mostly SSPs and publishers, who may not get paid in full.
The company’s downfall results from poor management, high debt, and competitive pressure in the digital advertising industry.