Yahoo to Buy Rest of Right Media for $680M

April 30, 2007

The move is to boost the reach of Yahoo's advertising to social network sites, which marketers have struggled to reach.

Yahoo took a 20 percent stake last October in privately held, New York-based Right Media, which was founded in 2003.

Shareholders of Right Media will be paid in roughly equal parts in cash and stock, and employee stock options and other equity awards will be assumed by Yahoo, Yahoo said on Monday.

The Right Media Exchange is the industry's largest emerging online advertising exchange, which serve up banner ads and other ad formats to less-trafficked parts of Web sites than traditional premium ad networks, which target busy Web sites.

Yahoo, the market leader in display advertising used by big brand-name marketers, is seeking to boost its presence in the fast-growing market for advertising that can be targeted to small audiences such as individual social network profiles.

The move comes as Yahoo seeks to fend off rival Google Inc., the world leader in delivering pay-per-click advertisements that run alongside Web search results, after Google's recent deal to acquire premium ad network DoubleClick for $3.1 billion.

DoubleClick gives Google a similar capacity to sell so-called remnant advertising on millions of less-trafficked Web pages. Advertising exchanges work like electronic stock markets to connect buyers and sellers of ads more efficiently.

Right Media bolsters Yahoo's capacity to help advertisers reach customers both on the Internet at largest as well as on Yahoo's own growing number of social-network properties. These include Yahoo Answers, where site users answer one another's questions, and its Flickr photo-sharing site.

Right Media has attracted around 20,000 advertisers, publishers and networks to its online advertising exchange. Yahoo said it planned to increase its participation in the exchange as both a buyer and seller to increase the liquidity of Right media as an advertising media marketplace.

Venture capital firm RedPoint Ventures of Menlo Park, California is another outside investor in Right Media.

Yahoo officials plan to hold a conference call with investors to discuss the deal at 11:00 a.m. EDT/1500 GMT.

Copyright 2007 by Ziff Davis Media, Distributed by United Press International

Explore further: Yahoo launches site for free Hulu television

Related Stories

After Yahoo, who's next?

August 4, 2016

Now that Yahoo Inc. is being sold, what other struggling tech companies might soon find themselves on the auction block?

Where Yahoo's media play went wrong

June 8, 2016

When Yahoo announced last year that it had lost $42 million reviving NBC's TV series "Community" and launching two other original shows, the company framed it as a failed experiment. It didn't work, so Yahoo was cutting its ...

Verizon could boost Yahoo ad targeting, but challenges ahead

July 25, 2016

Verizon's deal for Yahoo could give the phone company a stronger foothold in digital advertising as it takes what it knows about its customers' whereabouts and combines that with Yahoo's popular destinations and AOL's advertising ...

Recommended for you

Auto, aerospace industries warm to 3D printing

August 25, 2016

New 3D printing technology unveiled this week sharply increases the size of objects that can be produced, offering new possibilities to remake manufacturing in the auto, aerospace and other major industries.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.