Microsoft’s acquisition of Xandr from AT&T has officially closed, the company announced Monday, allowing the company to build up its ad business — particularly in connected television and linking it to search advertising.

Financial terms of the deal were not disclosed, but reports estimate the price at about $1 billion.

“We’re excited to combine our audience understanding, technology, and global advertising customer base with Xandr’s data-driven platforms for digital advertising solutions,” stated Microsoft Advertising Corporate Vice President Rob Wilk.

In December 2021, AT&T agreed to sell its programmatic ad-tech unit Xandr to Microsoft.

The deal not only gives Microsoft the ability to increase support for cookieless targeting and increase privacy preferences, but it also links Microsoft more closely to connected television (CTV). Some suggest the deal assisted the company in linking a partnership with Roku to show how TV ads affect online search.

At this year’s NewFronts, Roku announced a program for shoppable ads, dynamic linear ad insertion, and a collaboration with Microsoft.