Criteo reportedly in M&A talks with Skai to strengthen retail media focus

In a move that could significantly bolster its position in the retail media space, Criteo, the France-based advertising technology company, is in advanced merger and acquisition (M&A) discussions with Skai, a company formerly known as Kenshoo, Digiday reported on Wednesday. These talks, which have been ongoing for several weeks, suggest that Criteo is keen on expanding its capabilities and market reach through a potential acquisition that could be valued in the hundreds of millions of dollars. While a final agreement is yet to be reached, sources close to the matter indicate that the negotiations are progressing, albeit with no guarantees of a definitive outcome.

Skai, which rebranded from Kenshoo in 2021 to reflect its evolving business focus, has built a strong reputation in the performance marketing sector. The company has reportedly been exploring strategic partnerships and potential buyouts, with bankers appointed earlier this year to solicit offers from interested parties. One insider, speaking anonymously, noted that Skai has attracted considerable interest from key players in the industry, thanks to its impressive earnings before interest, taxes, depreciation, and amortization (EBITDA) and growth metrics. This source also speculated that Skai could be sold for more than $500 million, underscoring the high value placed on the Israel-based company’s capabilities.

Criteo, for its part, has remained tight-lipped about the ongoing negotiations, adhering to its policy of not commenting on market rumors or speculation. Skai’s public relations team has similarly remained silent, declining to respond to multiple requests for comment. However, the potential acquisition of Skai would align with Criteo’s broader strategy to pivot towards retail media—a shift that has been central to the company’s turnaround efforts under the leadership of CEO Megan Clarken since 2020.

Clarken, who took the helm during a challenging period for Criteo, has been steering the company away from its traditional reliance on third-party cookies, which have become increasingly deprecated by major tech platforms like Google and Apple. As part of this strategic shift, Criteo has made several key acquisitions, including the purchase of BrandCrush last year, as well as earlier deals for Mabaya and IPONWEB. These acquisitions have been aimed at enhancing Criteo’s ability to support brands in targeting ads within the rapidly growing retail media sector, which remains a core focus despite changes in the digital advertising landscape.

The timing of Criteo’s interest in Skai comes as the ad tech sector is beginning to see a resurgence in M&A activity after a relatively quiet period. Recent high-profile deals, such as Outbrain’s $1 billion acquisition of Teads and ongoing merger talks between Connatix and JW Player, indicate that consolidation is once again on the rise. For Criteo, the addition of Skai’s technology and expertise could provide a significant boost to its retail media offerings, particularly in helping brands navigate the complexities of walled gardens and improve their measurement capabilities.

Earlier this year, Criteo also announced a partnership with Microsoft Advertising, a collaboration designed to enhance the retail media ecosystem by leveraging Microsoft’s extensive demand network and Criteo’s expertise in onsite media. The partnership is expected to address growing advertiser frustration within the $150 billion retail media landscape by creating a more unified and effective platform for targeting consumers.

If the acquisition of Skai comes to fruition, it could further solidify Criteo’s position as a leader in the retail media space, enabling the company to offer more robust solutions for advertisers and brands alike. As the digital advertising industry continues to evolve, such strategic moves will be crucial for companies looking to stay ahead of the curve and capitalize on emerging opportunities.