Video ad tech startup, LiveRail, has been acquired by Facebook

Facebook has just bought video ad tech startup LiveRail, which connects marketers to publishers on web and mobile to target 7 billion video ads to visitors per month. A source tells us Facebook paid between $400 million and $500 million for LiveRail, but Facebook refused to comment on the terms. [Update 3:30pm PST: Another source now tells us LiveRail sold for $500 million, matching the $400 million to $500 million range I reported earlier.] Facebook did say it will invest in keeping LiveRail running and is evaluating how to intermingle their data, but it plans to use its data to aid LiveRail with its targeting and vice-versa. The acquisition of the 170-person company could help Facebook own a bigger chunk of video advertising, the fasting growing Internet ad medium. Founded in 2007, LiveRail’s supply side platform has a large base of customers including Major League Baseball, ABC Family, A&E Networks, Gannett, and Dailymotion. LiveRail provides publishers with video ad targeting tech so they can make money routing messages to customers they’ll be relevant to, and helps marketers connect with sites and apps with open video ad inventory. LiveRail had raised $12 million from its seed to Series C round, mostly from San Jose’s Pond Ventures. We’ve heard its acquisition price was $400 million to $500 million, which would make it a huge win for Pond. The deal requires Facebook notify FTC and Department Of Justice regulators, but might not necessarily require formal approval. Still, this is no puny acqhire or firesale pick-up. LiveRail was doing well and Facebook had to pony up for it.