Stock Update (NASDAQ:ADBE): Adobe Systems Incorporated Completes Acquisition of TubeMogul

Adobe Systems Incorporated (NASDAQ: ADBE) announced the completion of its acquisition of TubeMogul, a leader in video advertising that enables brands and agencies to plan and buy video advertising across desktops, mobile, streaming devices and TVs. The combination of Adobe and TubeMogul will create the first end-to-end independent advertising and data management solution that spans traditional TV and digital formats, simplifying what has been a complex and fragmented process for the world’s biggest brands. The planned integration with Adobe Audience Manager will allow marketers to unify audience planning and media buying for video advertising.

“The addition of TubeMogul will further strengthen Adobe’s leadership in digital marketing and advertising technology,” said Brad Rencher, executive vice president and general manager of Digital Marketing, Adobe. “We are excited to extend Adobe Marketing Cloud’s search, display and social planning and delivery solutions to help our customers maximize their video advertising investments across screens.”

“The acquisition of TubeMogul enables Adobe to help marketers navigate the most important development in advertising in 50 years—the dispersal of consumer video consumption beyond live, prime-time television and into mobile video, OTT and other on-demand channels,” said Scott Denne, research analyst with 451 Research. “With an already extensive footprint in digital marketing, the addition of TubeMogul gives Adobe a technology that addresses that largest portion of most marketing budgets—TV advertising—and strengthens Adobe’s pitch to CMOs through an offering that will equip data-driven TV campaigns.”

“We are excited to enter the next phase of our growth as part of Adobe,” said Brett Wilson, CEO and co-founder of TubeMogul. “Adobe’s commitment to innovation, independence and openness means that marketers can count on software without compromise. A combined Adobe and TubeMogul is uniquely aligned with advertisers – a neutral, independent partner to streamline buying across channels that doesn’t have direct ownership of media.”

With the acquisition now closed, Brett Wilson will continue to lead the TubeMogul team and focus on video advertising solutions as an instrumental part of Adobe’s Digital Marketing business. Adobe plans to share the product roadmap for the integration of TubeMogul with Adobe Marketing Cloud at Adobe Summit—The Digital Marketing Conference. The annual event will convene thousands of digital marketing professionals in Las Vegas, Nevada from March 19-23, 2017, to focus on the future of digital marketing and delivering personalized, engaging and consistent customer experiences across devices.

TubeMogul was previously named a video demand-side platform (DSP) leader by Forrester Research in its report: The Forrester Wave™ Video Advertising Demand-Side Platforms, Q4 2015. Adobe and TubeMogul share several joint customers that will benefit from TubeMogul’s integration with Adobe Marketing Cloud solutions including Allstate, Johnson & Johnson, Kraft, Liberty Mutual, L’Oréal, Nickelodeon and Southwest Airlines.

Adobe announced it will host a brief conference call with financial analysts and investors on Jan. 9, 2017 to discuss its acquisition of TubeMogul. During the call, Adobe management will review the strategic rationale of the acquisition, as well as outline the implications of adding TubeMogul into its fiscal year 2017 financial targets. (Original Source)

Shares of Adobe closed today at $105.29, up $1.74 or +1.68%. ADBE has a 1-year high of $111.09 and a 1-year low of $71.27. The stock’s 50-day moving average is $104.69 and its 200-day moving average is $101.99.

On the ratings front, Adobe has been the subject of a number of recent research reports. In a report issued on December 16, Wunderlich Securities analyst Ryan MacDonald reiterated a Hold rating on ADBE, with a price target of $115, which represents a potential upside of 11% from where the stock is currently trading. Separately, on the same day, J.P. Morgan’s Sterling Auty maintained a Buy rating on the stock and has a price target of $124.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ryan MacDonald and Sterling Auty have a yearly average return of 5.0% and 11.9% respectively. MacDonald has a success rate of 46% and is ranked #1374 out of 4283 analysts, while Auty has a success rate of 57% and is ranked #242.

Sentiment on the street is mostly bullish on ADBE stock. Out of 18 analysts who cover the stock, 12 suggest a Buy rating and 6 recommend to Hold the stock. The 12-month average price target assigned to the stock is $121.70, which represents a potential upside of 18% from where the stock is currently trading.

Adobe Systems, Inc. provides digital marketing and digital media solutions. The company operates its business through three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat. This segment also offers other tools and services, including hobbyist products, such as Adobe Photoshop Elements and Adobe Premiere Elements, Adobe Digital Publishing Suite, Adobe PhoneGap, Adobe Typekit, as well as mobile apps, such as Adobe Photoshop Mix, Adobe Photoshop Sketch and Adobe Premiere Clip that run on tablets and mobile devices. The Digital Media serves professionals, including graphic designers, production artists, web designers and developers, user interface designers, videographers, motion graphic artists, prepress professionals, video game developers, mobile application developers, students and administrators. The Digital Marketing segment offers various solutions, including analytics, social marketing, targeting, media optimization, digital experience management and cross-channel campaign management, as well as premium video delivery and monetization. This segment also offers legacy enterprise software, such as Adobe Connect web conferencing platform and Adobe LiveCycle. The Print and Publishing segment offers legacy products and services for eLearning solutions, technical document publishing, web application development and high-end printing. 

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