Facebook_LiverailFacebook has acquired video ad tech startup LiveRail, which connects marketers to publishers on web and mobile to target 7 billion video ads to visitors per month.

Sources say that Facebook paid $500 million for LiveRail, but Facebook refused to comment on the terms.

Facebook has said that  it will invest in keeping LiveRail running and is evaluating how to intermingle their data, but it plans to use its data to aid LiveRail with its targeting and vice-versa.

The acquisition of the 170-person company could help Facebook own a bigger chunk of video advertising, the fasting growing Internet ad medium.

LiveRail had raised $12 million from its seed to Series C round, mostly from San Jose’s Pond Ventures.

A source tells says that LiveRail did $60 million in gross revenue (less than the $100 million LiveRail claimed) and $22 million in net revenue in 2013. It was apparently on pace to do $200 million in gross revenue in 2014 and $30 million.

Source: Tech Crunch