Paid too much to Yahoo to buy BrightRoll

Takeover confirmed! Yahoo buys the video advertising platform Brightroll. For this, the Internet company puts 640 million US dollars on the table.

Insiders had already twittered from the rooftops in October 2014: Yahoo wants to buy Brightroll. Now CEO Marissa Mayer has officially confirmed the takeover in the Yahoo company blog. With the help of the technology for video advertising, Yahoo wants to become the largest moving image advertising platform on the net. The investment of 640 million US dollars for the takeover is said to have paid for itself soon, because Brightroll is in the black: With two billion advertising inquiries per day, the company expects sales of 100 million US dollars this year.

"Video is Display 2.0," says Mayer, explaining the move. "Video is what brand advertisers love. The format elegantly and simply combines TV, PC, mobile and even wearables. This is precisely why video is one of the most important parts of our strategy."

Founded in 2006, Brightroll plans to continue working with publishers after the takeover that were previously not part of the Yahoo network. Around 400 employees switch to Yahoo. It is still unclear whether Brightroll CEO Tod Sacerdoti will stay on board.

The Brightroll acquisition is likely to be the second most expensive in Yahoo's history. The purchase of Tumblr in May 2013 cost the company $ 1.1 billion.

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Video advertising is one of Yahoo's growth areas. The turnover of the Internet company grew in the third quarter of 2014 by one percent to 1.09 billion US dollars; 200 million of these come from the mobile business, which is considered to be the market of the future.