Yahoo Buys Video Ad-Tech Giant BrightRoll for $640 Million


Yahoo is about to go from an online video also-ran to the country’s widest-reaching digital video ad seller.

On Tuesday, Yahoo announced that it has agreed to acquire video ad-tech firm BrightRoll for $640 million in cash. Expected to close in the first quarter of 2015, the deal is the portal’s second-largest acquisition under CEO Marissa Mayer, behind last year’s $1.1 billion acquisition of Tumblr.

Until recently Yahoo’s biggest revenue stream was display advertising. But that business has been in a rut for a couple years. The company’s display ad revenue hasn’t had a quarter of year-over-year growth since the third quarter of 2012. The problem: advertisers aren’t interested in buying Yahoo’s higher-priced “premium” ads, instead preferring relatively cheap ads sold programmatically via computer-based auctions.

Continue reading at AdAge.com

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