Yahoo has announced it is to acquire programmatic video ad platform BrightRoll for $640 million in cash.
The transaction, subject to the usual closing conditions, will combine Yahoo’s premium desktop and mobile video advertising inventory with BrightRoll’s programmatic video platform and publisher relationships to bring “substantial value” to advertisers.
In a statement, Yahoo said the acquisition will accelerate its strategy, which is focused on search, communications, and digital content through growth in mobile, social, native, and video advertising.
“Acquiring BrightRoll will dramatically strengthen Yahoo’s video advertising platform, making it the largest in the US,” the company said.
BrightRoll’s net revenues are expected to exceed $100 million this year and the move is expected to “significantly” enhance Yahoo’s EBITDA.
“Video, along with mobile, social, and native, is driving a surge in digital advertising,” said Marissa Mayer, Yahoo CEO.
“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. 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.”
Tod Sacerdoti, BrightRoll CEO and founder, added: “We believe the next step for programmatic video advertising as an industry is to extend and standardise globally, make cross-device buying simple and measurable, and complement and integrate with TV.”
“We are excited to join Yahoo to materially advance efforts in each of these areas. 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.”
The acquisition is expected to close in Q1 2015.
