Yahoo announced decision to acquire video ad company San Francisco-based BrightRoll for $640 million in cash. This is Yahoo’s second biggest acquisition, after the $1 billion Tumblr deal. Yahoo CEO Marissa Mayer appreciated in a blog post that the acquisition will make Yahoo’s video ad platform “the largest in the U.S.”
This should have a positive effect on Yahoo’s earnings too. BrightRoll was founded in 2006 by Tod Sacerdoti. Its goal is to automatically place ads in videos displayed on personal computers and mobile devices. That means ability to sell video ads in real-time to marketers. The service generated more than $100 million in annual revenue. Sacerdoti and his 400-plus team are expected now to be integrated in the Yahoo company. Actually, users base of Yahoo has expanded to more than 1 billion and mobile users are at about 550 million. Revenue from online video ads may surge 56% this year in the US to $5.96 billion, according to researcher EMarketer Inc. Yahoo will have just 2.4% of the worldwide market for all digital ads.