TWTR inks $230M, 2-year deal with ad giant Omnicom
• As part of the deal, Omnicom’s (OMC) Accuen ad trading desk, which makes programmatic ad buys (a fast-growing market), will make purchases via Twitter’s (TWTR) MoPub mobile ad exchange/network.
• In addition, Omnicom will be locking in ad rates and inventory access from Twitter, and get a “first look” at new Twitter ad products, of which there have been many as of late.
• The deal follows an agreement reached last year with Starcom MediaVest that’s reportedly worth $200M over 2 years. For reference, Twitter’s 2014 and 2015 revenue consensus estimates are at $1.27B and $2.04B.
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Re/code cited an unnamed source who said Twitter is in the final stages of a deal with Stripe that would let consumers use credit cards to purchase goods directly from within tweets on the site. Stripe is a privately held company that develops technologies for businesses to accept online payments.
Earlier in the week we saw that Goldman Sachs had raised its price target to $65 from $46 in its call. A gain of more than 5% in mid-Friday trading has Twitter’s stock price up to $63.70, close to the Goldman target. Twitter shares were indicated up 4% around $63 in early trading.
One cautious research note was issued in the past week. Nomura Securities had assigned only a Neutral rating. Other key downgrades have been seen since the start of 2014
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