Roblox Stock Rises as Online Gaming Platform Teams with PubMatic for Video Ads

Roblox (RBLX) shares were higher Wednesday afternoon, bucking a broader downturn for U.S. equities, after the online gaming platform struck a deal with tech ad firm PubMatic (PUMB) that will provide for media purchases of Roblox’s video advertising inventory when it becomes available later this year. 

PubMatic said the partnership will allow more brands easy access to Roblox’s more than 71 million daily active users, and give the company “scaled access to premium brand advertising demand.”

In November, Roblox began experimenting with video ads, explaining that it expects they will “increase developer payouts and advertiser value per impression.”

Stephanie Latham, VP of global partnerships at Roblox, said the partnership with PubMatic “unlocks the opportunity for more advertisers to seamlessly engage this community through preferred content formats, like video, while providing advertiser controls around brand suitability.”

Financial terms of the agreement were not disclosed.

Roblox shares were up 1.5% at $39.66 at around 3:15 p.m. ET. The stock has lost about 15% of its value over the past 12 months. PubMatic shares were down 3.4% in late trading.