Faaez Samadi
Apr 1, 2019

Sizmek files for bankruptcy

Ad tech platform’s plight another sign of fierce competition in digital advertising market dominated by big tech players.

(Photo: Paul Zimmerman/Getty Images/AFP)
(Photo: Paul Zimmerman/Getty Images/AFP)

Programmatic buy-side platform Sizmek has filed for voluntary Chapter 11 bankruptcy in the US, saying it is seeking access to investment capital to keep the company going.

According to a release, Sizmek had been in “extended discussions” with stakeholders to tackle the company’s “over-leveraged balance sheet”, but Sizmek’s primary lender took control of its accounts and cut off access to capital.

“As a result of this action, Sizmek's board of directors unanimously determined that Chapter 11 protection is the only responsible mechanism by which the company can seek access to capital and preserve value while it continues to explore value-maximizing alternatives,” the statement said.

Sizmek has considerable Asia-Pacific operations, with 19 offices across 11 countries listed on its website. The company has a large ad operations centre in Cebu in the Philippines, as well as sizeable teams in Singapore and Malaysia.

Just a few weeks ago Sizmek announced Paul Kent as its new APAC commercial director, and in November last year hired Peter Hunter as APAC general manager.

It remains to be seen how much Sizmek’s APAC operations will be affected by the US bankruptcy proceedings. In the past, failing ad tech firms have seen rivals swoop in at cut prices, either for entire operations or certain product lines. Amobee’s acquisition of Videology followed the latter’s bankruptcy filing in May 2018.

Related Articles

Just Published

3 hours ago

MediaCom's Josh Krichefski takes on global COO role

He will continue existing responsibilities as EMEA chief executive, but plans to spend much time on APAC and the US.

3 hours ago

Hyundai Motor marketer sees India overcoming ...

The director for sales, marketing and service in India relates how digital launches are helping the company navigate the 'new normal'.

3 hours ago

Havas Q2 organic revenue dives 18%

Asia-Pacific records sharp declines, but healthcare is a bright spot.

12 hours ago

Singpost celebrates the mailwoman as an unsung hero

A sweet new film to highlight the (often thankless) contributions of mailpersons.