BBC Russian

Walt Disney Co. is looking to sell TrueX, an advertising-technology company it absorbed as part of its $71.3 billion acquisition of 21st Century Fox assets last year, according to people familiar with the matter.

TrueX is perhaps best known for offering technology that asks users to interact with an ad before consuming a piece of content in exchange for fewer or no commercials while the content plays. Some publishers use TrueX ad formats in front of full episodes of TV shows or long-form videos on their sites and apps.

The company has pitched its approach as a way to improve both ad effectiveness and the experience for web users. This includes long-form digital video viewers who are accustomed to sitting through multiple, often repetitive ad breaks.

TrueX’s tech has been used by ad sellers including Fox, Turner (now AT&T Inc.’s WarnerMedia) and Pandora Media. Disney’s Hulu division uses TrueX, along with Innovid Inc. and BrightLine Partners LLC, for interactive advertising, according to a person familiar with the matter.

Newsletter Sign-up

TrueX was acquired by 21st Century Fox in 2014 for close to $200 million. TrueX co-founder Joe Marchese joined Fox and later became the ad sales chief of Fox Networks Group.

The company’s annual revenue was less than $100 million by the time of the Disney deal, according to a person familiar with TrueX.

TrueX was part of Fox’s strategy to reduce ad time on its digital properties, the person said. Ahead of the 2014 acquisition, James Murdoch, then the co-chief operating officer of 21st Century Fox and already a member of TrueX’s board, said that the company was interested in exploring new ad experiences for users, including delivering lighter ad loads on its apps.

Fox also helped TrueX land customers such as Turner, A+E Networks Group and Amazon.com Inc.’s Twitch, as well as nonvideo publishers including Pandora Media and Zynga Inc., the person familiar with TrueX said.

Disney, which considers the firm and its technology a noncore asset, didn’t invest in TrueX after the Fox deal, said people familiar with the matter. TrueX operated as an independent subsidiary of Fox and Disney, and wasn’t integrated into Disney’s sales or tech organizations following the megamerger.

Disney’s asking price for TrueX couldn’t be learned. Its interest in selling TrueX preceded the widespread business disruption caused by the coronavirus pandemic, which could hurt its ability to get a deal done, the people familiar with the matter said.

More From CMO Today

Sports Leagues Offer Free Streaming of Older Games Amid Coronavirus Shutdown March 18, 2020
Cannes Lions Ad Festival Postponed to October March 18, 2020
Disney Looks to Sell TrueX, Ad-Tech Firm It Absorbed From Fox March 17, 2020

Mr. Marchese left Fox in 2019 and formed Attention Capital, a new holding company to acquire media and ad-tech assets. Attention partnered with Lupa Systems, an investment firm led by Mr. Murdoch, to acquire the company behind the Tribeca Film Festival.

Mr. Marchese has expressed interest in buying TrueX from his former employer, according to people familiar with the matter. Mr. Marchese declined to comment.

WSJ opens select articles to reader conversation to promote thoughtful dialogue. See the 'Join the Conversation' area to the rightbelow for stories open to conversation. For more information, please reference our community guidelines. Email feedback and questions to [email protected].