NEW YORK (TheStreet) - Yahoo! (YHOO) is acquiring BrightRoll, one of the leading programmatic digital video advertising platforms, for $640 million in cash, in an effort to turn around its declining display advertising business.
The Sunnyvale, Calif.-based company announced late Tuesday that the transaction 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 on both platforms."
Yahoo! has made it clear that video advertising is a major part of its long-term strategy, which includes mobile, social, native, and video advertising. Acquiring BrightRoll will "dramatically strengthen Yahoo's video advertising platform, making it the largest in the U.S.," it said in the release.
"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," Yahoo! CEO Marissa Mayer said in the release. "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."
Yahoo shares were rising 0.93% to $49.51 on Wednesday. Here's what analysts had to say about the acquisition.