AOL wants to buy US video advertising technology start-up company Adap.tv

Beijing time July 19, according to foreign media reports, sources revealed that AOL wants to provide 375 million-425 million U.S. dollar offer to buy American video advertising technology start-up company Adap.tv.

The source said Adap.tv company has not yet decided whether to accept the offer of AOL. AOL also declined to comment on the rumours.

However, for AOL, the acquisition of Adap.tv is definitely a reasonable deal. AOL's fastest-growing and most stable source of revenue is its banner advertising business ad.com. The ads on the ad.com are purchased in real time and targeted at a variety of specific data. The acquisition of Adap.tv will help AOL expand its advertising business to higher-priced video advertising.

The problem now is that 400 million dollars is a big expense for AOL. Currently, AOL has only 467 million dollars in cash on its balance sheet.

Adap.tv was founded in 2006 and currently has raised some 50 million dollars from venture capital firms such as Redpoint, Gemini and Spark. This February, Bloomberg reported that the company was considering an IPO. However, the source said that for Adap.tv, selling a company is more reasonable than an IPO, because a public listing could drag the company into the mire.