Advertising firm Federated Media announced today that it has exited its content marketing division to focus on programmatic advertising. The said business was sold to LIN Media. Financial terms of the transaction were not disclosed, according to VentureBeat.
In the last couple of years, the San Francisco-based advertising company has moved away from display ads to focus more on programmatic ads. Now, the firm is executing the same strategy with its content marketing division, which also encompasses sponsored or promoted content, the report explained.
As part of the deal, Federated will change the name of its programmatic ad unit from Lijit to Sovrn. The latter will operate as an independent nit. Founder and chief executive officer (CEO) John Battelle will then sit as the chairman of Sovrn. Former chief operating officer Walter Knapp will become the new division's CEO. The transaction will also turn Federated Media into a portfolio firm, the report detailed.
According to the advertising company, the proceeds from the sale will be used for Sovrn's expansion and workforce addition, VentureBeat reported.
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