T-Mobile acquires Vistar Media for $600 million

T-Mobile has made headlines with its $600 million all-cash acquisition of Vistar Media, a leading player in the digital out-of-home (DOOH) advertising space. This strategic move aims to bolster T-Mobile’s advertising business, leveraging cutting-edge technology and first-party customer data to tap into the expanding DOOH market.

Vistar Media, headquartered in New York, brings to the table a robust network of over 1.1 million digital screens located in high-traffic areas such as Times Square, concert venues, gyms, and airports. Vistar’s platform supports the buying, selling, and management of OOH campaigns, offering services to more than 370 media owners and over 3,000 advertisers. The acquisition is expected to close in the first quarter of 2025, pending regulatory approvals, with financial and legal counsel provided by Allen & Company and Cleary Gottlieb Steen & Hamilton, respectively.

By combining T-Mobile’s extensive first-party data with Vistar’s scalable technology, advertisers gain the ability to target audiences with precision. For example, location data and app usage insights can direct ads for niche interests, like gardening or crocheting, to specific regions or screens.

Digital transformation in OOH is gaining momentum, with digital screens expected to contribute 42% of OOH ad revenue by 2025, according to GroupM. T-Mobile’s move comes at a time when the overall OOH market is forecasted to grow 7.1% in 2025 to reach $56.1 billion. T-Mobile has been steadily expanding its advertising initiatives, including its 2022 acquisition of rideshare ad startup Octopus Interactive and the launch of its retail media network featuring over 20,000 in-store screens.

“T-Mobile is always envisioning new ways to deliver for consumers and we see a tremendous opportunity to provide more relevant and personalized advertising,” said JP Colaco, SVP & Chief T-Ads Officer, T-Mobile. “Combining T-Mobile’s customer-centric approach and its expertise as one of the nations most scaled marketers, with Vistar’s leading out-of-home technology means advertisers can easily place their ads where they know their audience will be, improving every step of the customer journey. Together with Vistar, T-Mobile will deliver advertising solutions built by marketers, for marketers.”

This acquisition underscores T-Mobile’s confidence in the growth potential of the DOOH market, as competitors like AT&T and Verizon scale back their investments in ad tech. Michael Provenzano, CEO of Vistar Media, praised T-Mobile’s decision, stating, “For 13 years, Vistar has pioneered using technology and data to transform OOH into a strategic and measurable channel. T-Mobile’s belief in the future of OOH underscores the strength of this channel.”