MNTN, an advertising firm that specializes in connected TV, is debuting on the New York Stock Exchange.
On May 21, the organization disclosed an initial public offering (IPO) priced at $16 per share, which was the upper limit of its anticipated range. The valuation of MNTN is approximately $1.2 billion, as indicated by the share price.
Ryan Reynolds, an actor, has been the chief creative officer of MNTN since the company acquired his creative firm, Maximum Effort, in 2021. Reynolds remained as CCO, despite the fact that MNTN divested from Maximum Effort in March. Nevertheless, MNTN founder and chief executive officer Mark Douglas informed ADWEEK that Reynolds did not attend the IPO in New York this week.
Douglas stated that MNTN intends to leverage the demand for performance-oriented CTV ad placements by going public. The majority of MNTN’s advertisers are small and medium-sized businesses, with 96% of them utilizing the ad platform to experiment with TV advertising for the first time.
Douglas stated that the demand for MNTN’s shares was 14 times greater than the number of shares available for sale, as per the estimates of financiers. This information served to strengthen the case for an IPO.
“The market responded,” he stated. “A significant number of our clients rely on Google, Meta, and now MNTN to facilitate their business expansion.” Therefore, we are committed to providing those companies with a clear understanding of the strength of our business, as well as its scope.
MNTN’s offering comprises 11.7 million shares, with 8.4 million shares issued by the company and an additional 3.3 million shares issued by existing stockholders. Additionally, shareholders granted underwriters—including Morgan Stanley, Citigroup, and Evercore—the option to acquire an additional 1.8 million shares at the initial price within 30 days of the IPO.
Douglas mentioned that MNTN did not generate an overall profit in 2024; however, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $39 million. He anticipates that this figure will rise in 2025.
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Matchmaking in the realm of cable television
Douglas stated that MNTN intends to maintain its emphasis on small and medium-sized enterprises as it pursues its subsequent growth phase. Additionally, the organization will allocate resources to artificial intelligence-based product innovation.
“We also appreciate large brands; we have a few of them,” Douglas stated in reference to MNTN’s clientele. “However, in the time it takes to acquire one of those, you can incorporate 6,000 smaller brands into the platform.”
Douglas regards MNTN as a mediator, rather than an advertising company, that facilitates the connection between consumers and brands and products they may enjoy through 30-second advertisements on popular streaming platforms such as HBO Max, Bravo, and ESPN.
Douglas stated, “It is an extremely influential medium.”
In 2009, Douglas established the organization as SteelHouse, which was later rebranded as MNTN in 2021.
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