×
You will be redirected back to your article in seconds

Yahoo to Acquire Video Ad-Tech Firm BrightRoll for $640 Million

Yahoo announced a deal to acquire BrightRoll, a programmatic video-advertising platform, for $640 million in cash.

The deal will combine Yahoo’s desktop and mobile video advertising inventory with BrightRoll’s platform and publisher relationships. BrightRoll’s net revenue is expected to exceed $100 million this year, and Yahoo said it expects the transaction to enhance its profitability.

Advertising technology is an area Yahoo has lagged, and analysts had suggested that both video and ad tech were areas Yahoo should beef up after it raked in several billion dollars from the Alibaba Group initial public offering.

“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,” Yahoo CEO Marissa Mayer said in announcing the deal. “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 added, “As with every acquisition, we have been extremely thoughtful about our approach to the video advertising space.”

The deal is expected to close in the first quarter of 2015, subject to various closing conditions. BrightRoll will continue to offer its current suite of products and services, according to the companies, with Yahoo’s additional investment and global support to improve and expand those offerings. BrightRoll will retain its 400 employees.

BrightRoll’s advertising network aggregates inventory form publishers and its “programmatic” advertising model allows real-time buying on a large set of online-video advertising.

With the BrightRoll acquisition, Yahoo will move up in comScore’s video-ad inventory rankings from 12th to fifth place, Wells Fargo analyst Peter Stabler wrote in a note. That would still leave Yahoo behind Google/YouTube, Facebook, SpotXchange and AOL.

Other deals in the video-advertising space have included AOL’s acquisition of Adap.tv for $405 million last year; Facebook’s deal for LiveRail; and Comcast buying FreeWheel for up to $375 million.

“We believe the next step for programmatic video advertising as an industry is to extend and standardize globally, make cross-device buying simple and measurable, and complement and integrate with TV,” BrightRoll CEO and founder Tod Sacerdoti said in a statement. “We’re still in the early innings as an industry, and together, BrightRoll and Yahoo are committed to the vision of helping grow the entire video advertising ecosystem.”

More Digital

  • Billy Magnussen Aladdin

    'Aladdin' Spinoff With Billy Magnussen's Character in the Works for Disney Plus

    Disney is developing a spinoff of its live-action “Aladdin” with Billy Magnussen reprising his Prince Anders character. The unnamed project is in early development for the studio’s recently launched Disney Plus streaming service. Disney has hired Jordan Dunn and Michael Kvamme to write a script centered on the haughty Prince Anders, one of Princess Jasmine’s [...]

  • Bernie Sanders Trump win

    Bernie Sanders Vows to Break Up Comcast, Verizon & AT&T: 'Their Greed Must End'

    Vermont Senator and Democratic presidential candidate Bernie Sanders unveiled plans to launch publicly-funded broadband networks and break up big internet providers like Comcast, Verizon and AT&T Thursday. “Their greed must end,” the Sanders campaign wrote in its high-speed internet policy proposal. The campaign argued that high-speed internet access should be treated as a public utility, [...]

  • The Office

    Streaming Wars Heat Up Rerun Market as New Services Stock Up on Hits

    In a year in which more than 500 scripted series are on the air and new streaming services seem to debut nearly monthly, some of the biggest money being thrown around for content has gone to a handful of old TV shows, the kind that for years have hummed along evening television without much fuss. [...]

  • The Irishman

    'The Irishman' Nabs 17.1 Million U.S. Viewers on Netflix in First Five Days, per Nielsen

    Martin Scorsese’s mafia saga “The Irishman” was watched by 17.1 million unique Netflix viewers in the U.S. in the first five days of its streaming release, according to Nielsen estimates. By comparison, Sandra Bullock-starrer “Bird Box” scored nearly 26 million U.S. viewers in its first seven days of availability (Dec. 21-27, 2018) on Netflix, according [...]

  • Amazon, HBO Max, Netflix Dish on

    Amazon, HBO Max, Netflix Dish on Their International Plans

    It’s different strokes for different streaming folks as Amazon, HBO Max and Netflix lifted the lid on their international plans in London this week. Amazon said it’s not in the volume game and talked up a select number of hyper-local shows, while Netflix dished on plans to rev up non-English-language originals. The message from HBO [...]

  • NOBODY’S LOOKING

    Daniel Rezende on Netflix Brazilian Series ‘Nobody’s Looking’

    Having premiered on Netflix Nov. 22, “Nobody’s Looking” marks the first collaboration between Gullane and Netflix – their second, “Boca a Boca” is in development- and comes from a long list of new projects that the streaming giant has announced with it’s $87 Million investment in Brazilian content. The series embodies the streaming platform’s push [...]

More From Our Brands

Access exclusive content