Demand-side platform MediaMath filed for Chapter 11 bankruptcy protection in Delaware district court on Friday. The company owes between $100 million and $500 million to between 200 and 999 companies, including Google, Magnite, OpenX, PubMatic, Xandr, among many others.
Emails went out to MediaMath employees and partners on Friday to say the company will shut down operations in the coming months, according to initial reports.
MediaMath raised $600 million since 2007. Valuation at its peak reached more than $1 billion, but the company failed to successfully negotiate terms with potential buyers in recent weeks.
The bankruptcy will have a wide-ranging effect on the advertising technology industry, with many well-known companies being owed more than $1 million. The top five include Magnite at nearly $12.6 million, PubMatic at nearly $10.5 million, Sonobi at $5.3 million, Xandr at $4 million, and AdsWizz at 3.4 million.
Viant Technology, and Verve Group separately held recent discussions to acquire MediaMath, but the potential deals fell through. MGI was in discussions as recently as this week, and Viant had discussions last month.
Viant, which is known for its efforts to revitalize companies.
The Irvine, California-based company bought social networking site Myspace from News Corp. in 2011 for $35 million.
MediaMath’s valuation has since fallen. Last year, it announced a $150 million recapitalization that included a mix of new capital and a refinancing of existing debt. The 2022 deal saw Searchlight Capital Partners become the indirect majority owner of MediaMath.
“Sad but it’s insane how many bad decisions they had to make over the years to get here, from not getting acquired when telcos were dishing money, to not securing CTV, to having that shit UI, to that weird supply path product they were banking on. They should have been what the Trade Desk is now,” according to one Reddit community member in r/adops.
Joe Zawadzki, Erich Wasserman and Greg Williams co-founded what would become the online advertising technology’s first demand-side platform in 2007. The company supported more than 3,500 advertisers