While speculation mounted on the future of the entire ecosystem of advertising technology, Sizmek, an independent specialty company in advertising technology, filed a voluntary application under Chapter 11.
Official documents were filed on March 29. , with a press release issued shortly before midnight, Eastern Daylight Time, as the industry shuddered speculating that the company, equally owned by private equity firms Cerberus Capital Management and Vector Capital, was subject to serious financial difficulties
By official documentation, Sizmek recently discussed with its stakeholders the support of the company given its "over-levered balance sheet" in recent weeks.
"As a result of this action, the Sizmek Board unanimously decided that Chapter 11 protection is the only responsible mechanism by which society can seek access to capital and preserve its value ", reads in the document .
"The Sizmek affair in Chapter 11 is pending in the Bankruptcy Court of the Southern District of New York in the United States."
Earlier this month, AdExchanger announced that needed another round of investment, with Adweek later reported that his demand-driven platform was fraught with security issues.
All of this raises big questions about the advanced technology sector, Google is said to be considering decisions that could result in a fundamental shift in the monetization of online content.
Earlier in the year, it was reported that Sizmek's private equity investors, including Vector Capital and Cerberus Capital Management, were looking for put options, but are not willing to consider a sale piecemeal. Vector bought Sizmek for $ 122 million in 2016.
Sizmek declined to comment.