Yahoo acquires video advertising service BrightRoll for £402m
In a bid to stimulate further growth within the company, internet giant Yahoo has just announced it will be taking over the digital video advertising service BrightRoll for an agreed sum of £402m ($640m).
BrightRoll – which was founded in 2006 by Tod Sacerdoti – is a video advertising platform that connects buyers and sellers of digital video advertising to help them reach audiences across web, mobile, and connected TV.
The move intends to allow Yahoo to grow its video advertising platform, which will result in making it the largest in the US, according to the firm.
This acquisition has come at the right time for Yahoo who reported that the company’s third quarter revenue from ads fell by 5% compared to a year earlier. It was also noted that key competitor Google increased its own revenue over the same period by 17%.
A report from TechCrunch indicated that the move will see BrightRoll’s 400+ team join Yahoo, which will include the companies management. However the final role of CEO Tod Sacerdoti is yet to be confirmed.
This is the first major acquisition since Yahoo involvement with IPO of Alibaba and their most expensive takeover since acquiring Tumblr back in 2013 for $1 billion.