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The move marks an aggressive expansion of Microsoft’s advances in the advertising space.

AT&T announced this week that it has agreed to sell its global programmatic advertising marketplace, Xandr, to Microsoft. The agreement builds on a decade-long relationship between Xandr, including its predecessor companies, and Microsoft for delivering global digital media solutions for advertisers.

Microsoft and Xandr can shape the digital ad marketplace of the future, the companies claim. Xandr’s technology strategically complements Microsoft’s current advertising offerings, they say.

Xandr will also help accelerate delivery of digital advertising and retail media solutions for the open web, according to Microsoft. It does this by combining Microsoft’s audience intelligence, technology and global advertising customer-base with Xandr’s scaled, data-driven platform.

Extending Microsoft’s advertising business to television

The acquisition of Xandr extends Microsoft’s advertising business to another area: TV ads. Xandr provides cloud services that enable companies to buy TV advertising spots from broadcasters and measure ad campaign performance.

For broadcasters, the AT&T unit offers software that helps optimize revenue generated from the sale of advertising spots. Xandr also provides ad tools for other marketing channels.

Xandr’s EVP and GM Mike Welch commented. “Microsoft’s shared vision of empowering a free and open web and championing an open industry alternative via a global advertising marketplace makes it a great fit for Xandr.”

Mikhail Parakhin, President of Web Experiences at Microsoft, also commented. “With Xandr’s talent and technology, Microsoft can accelerate the delivery of its digital advertising and retail media solutions,” he said.

“We look forward to using our innovative platform to help accelerate Microsoft’s digital advertising and retail media capabilities,” he added.

The transaction is subject to customary closing conditions, including regulatory reviews.