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.

Source:
Campaign Asia

Related Articles

Just Published

20 hours ago

Agency Report Cards 2023: We grade 31 APAC networks

Campaign Asia-Pacific presents its 21st annual evaluation of APAC agency networks based on their 2023 business performance, innovation, creative output, awards, action on DEI and sustainability, and leadership.

20 hours ago

OpenAI inks multi-year content deal with News Corp

The five-year agreement comes as Microsoft, OpenAI, and Google face intense scrutiny over training AI models on copyrighted content usage without consent.

20 hours ago

Agency Report Card 2023: Initiative

Losing long-term client Carlsberg is a blow for the agency, and Initiative has tried to mitigate the losses with solid employee initiatives.

21 hours ago

Global indie media rankings: PMG and Cossette lead ...

Big single wins for Australia's Nunn Media and Howatson+Co helped them place 3rd and 11th respectively.