Yahoo! Inc. is to acquire BrightRoll, a programmatic video advertising platform for approximately $640 million in cash. BrightRoll’s net revenues are expected to exceed $100 million this year. Yahoo expects the transaction to enhance its EBITDA. Acquiring BrightRoll will make Yahoo’s video advertising platform the largest in the US.
“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,” said Marissa Mayer, Yahoo CEO. “As with every acquisition, we have been extremely thoughtful about our approach to the video advertising space. 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. The combination builds positive momentum for Yahoo’s broader display advertising business in 2015.”
The acquisition is expected to complete in Q1 2015. BrightRoll will retain their team of approximately 400 employees.
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