Yahoo buys Right Media for $680 million
Internet company acquires online ad exchange
More Articles:
Most Viewed:
MGM awaits new partner(907 views)Viacom, YouTube lawsuit heats up(728 views)New releases target 'Alice in Wonderland'(633 views)Jamie Foxx in play for 'Kane & Lynch'(631 views)Seacrest Twitters 'Idol' secret(589 views)Icahn launches hostile bid for Lionsgate(548 views) |
Sunnyvale-based Yahoo paid $680 million for the 80% of the company it didn't already own. In October Yahoo paid $40 million for 20% of Right Media, implying a value of $200 million for the company.
Gotham-based firm runs an online ad exchange that matches buyers and sellers of ads in an auction-based system. Company, which is not yet profitable, is expected to book $70 million in revenue this year, collecting 7% commission on sales.
Deal comes after Google acquired online ad distributor DoubleClick in a $3.1 billion transaction in April, a sign of how both are attempting to gain a foothold in various sectors of the advertising industry by promising to streamline the often arcane process of buying and selling advertising.
"We hope to revolutionize the way ads are bought and sold on the Internet and, in turn, drive more value for advertisers, publishers and partners," said Yahoo CEO Terry Semel in a blog entry on the Right Media deal.
The acquisition reps Yahoo's latest attempt to broaden its advertising footprint. Earlier this year it announced Project Panama, a system for buying and keywords on Yahoo Search, and an alliance with 264 U.S. newspapers to sell their online ad inventory.
Yahoo chief financial officer Susan Decker said those newspapers are likely candidates to participate in the online ad exchange.
