Yahoo acquires video-advertising service BrightRoll for $640 Million

Marissa Mayer

The $640 million price tag makes BrightRoll one of Yahoo CEO Marissa Mayer’s most expensive acquisitions after it acquired Tumblr for US$1 billion last year.

On Tuesday, Yahoo announced it has acquired digital video ad firm BrightRoll for $640 million to bolster its ability to sell video ads in real-time to marketers.

Video ad tech company BrightRoll hosts videos for publishers and along with algorithms, helps them select which ads to run against them. BrightRoll also helps advertisers find the right videos to sponsor.

The acquisition is an all-cash deal that and with the latest purchase Yahoo is looking to reassert itself in a changing media world by buying smaller companies. The $640 million price tag makes BrightRoll one of Yahoo CEO Marissa Mayer’s most expensive acquisitions after it acquired Tumblr for US$1 billion last year. But unlike Tumblr, BrightRoll is already making profits with US $100 million in revenues and 2 billion ad requests every day, a point Yahoo emphasized in the press release.

“This acquisition will accelerate the growth of both companies – we can help BrightRoll scale to even more advertisers globally and they can bring their tremendous platform offering to Yahoo’s advertisers,” Mayer said in a statement.

Yahoo’s acquisition of BrightRoll is connected to the company’s good fortune in owning a large stake of Alibaba (BABA) shares. Yahoo raised $8.3 billion by selling 121.7 million shares in the Alibaba initial public offering months ago, although a major chunk of that is slated to be returned to the company’s shareholders. That added to Yahoo’s financial firepower, giving it the ability to aggressively purchase smaller companies with promising technology.

The move is not surprising since it was previously reported that the two companies had been in talks. Previously, Yahoo had been linked to other video platforms as well, including content creator Fullscreen.

In the press release, Yahoo said that addition of BrightRoll’s inventory to its existing stock would make it the biggest video ad platform in the United States. With Video being one of the fastest-growing segments of online advertising, eMarketer expects nearly $6 billion to be spent in 2014 and to more than double that by 2018.

“Video, along with mobile, social, and native, is driving a surge in digital advertising. Here at Yahoo, video is one of the largest growth opportunities, and BrightRoll is a terrific, strategic and financially compelling fit for our video advertising business,” Mayer said in a press release.

BrightRoll’s 400 or so employees including the company’s management will be joining Yahoo and will remain focused on video advertising.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Facebook

Leave a Reply

Your email address will not be published.

Recent Posts

Multiple Fires Force CPSC to Recall Costco Solar Patio Umbrellas

Multiple Fires Force CPSC to Recall Costco Solar Patio Umbrellas

The Costco umbrella recall was jointly issued by the CPSC, Health Canada, SunVilla, and Costco. The CPSC has urged customers to remove the solar panel puck from the top of the umbr
18 hours ago
Volvo Zero-emission Truck – Traced by Water Vapor

Volvo Zero-emission Truck – Traced by Water Vapor

In early 2022, Volvo signed the Drive to Zero pledge, reiterating its commitment to provide zero-emission commercial vehicles. Volvo is one of the largest manufacturers of cars, tr
22 hours ago
Bill Ackman on Inflation: The Fed Will Hike Interest Rates

Bill Ackman on Inflation: The Fed Will Hike Interest Rates

Last month, the hedge fund manager suggested that only aggressive monetary tightening or a collapse in the economy will do the trick. He stated that the markets will recover if the
3 days ago
Cadillac’s Luxury Electric Vehicle Starts At $300,000

Cadillac’s Luxury Electric Vehicle Starts At $300,000

The Lyriq is the headliner for Cadillac as it is the first of GM’s brands to go all-electric by 2030.The Celestiq will not roll off GM’s usual factories, rather it will be
3 days ago
Juul Products Banned – Will The FDA Win The Battle?

Juul Products Banned – Will The FDA Win The Battle?

In a written statement, FDA Commissioner Robert M. Califf stated, “Today’s action is further progress on the FDA’s commitment to ensuring that all e-cigarette and electronic
5 days ago
The Mark Cuban Cost Plus Drug Company Takes on Big Pharmas

The Mark Cuban Cost Plus Drug Company Takes on Big Pharmas

Commonly used generic drugs are available at a 15% markup, plus a $3 dispensing fee and $5 shipping fee. In an interview with PBS News, Cuban told the host that the Mark Cuban phar
5 days ago