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Facebook buys Live Rail, a company set up by two Romanians

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Facebook announced it would take over the online video advertising Live Rail through a transaction estimated at 400-500 million dollars. Two Romanians, Andrei Dunca and Sergiu Biris are co-founders of the company.Live Rail was set up in 2007 by Andrei Dunca, Sergiu Biris and Mark Trefgarne and has offices in San Francisco, New York, London, Paris and Cluj Napoca.

 

In a press release, Facebook shows that they had decided to purchase the online advertising company Live Rail, which has helped companies like Major League Baseball, ABC Family, A&E Networks, Gannett and Dailymotion present better ads in video clips and in applications. Live Rail was set up in 2007 and offers an extensive platform to online video content suppliers, helping them identify and present the best advertisements. Live Rail also helps companies buy advertising offering them access to premium video content and information they need to decide where to present their ads.Facebook has not revealed details about costs but according to TechCrunch they seem to be about 400-500 million dollars.

 

Until now, Live Rail has attracted financing of 12 million dollars from Pond Ventures, an investment fund in IT start-up companies.Live Rail had gross incomes of 60 million dollars last year, according to TechCrunch sources, although it anticipated 100 million dollars.For the ongoing year, the company expects gross incomes of 200 million dollars and profits of 30 million dollars before EBITDA.

 

The most important component of Live Rail is the online bidding platform which can evaluate the video advertising inventory with which video content sites work and helps advertising space buyers find the best variant. The company relationships with both adversiting buyers and sellers will help Facebook plans to develop its business, TechCrunch writes.

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