Yahoo to Acquire BrightRoll for $640M in Cash
In one of the year's biggest acquisitions in the online video space, Yahoo is set to acquire video advertising company BrightRoll for an all-cash payment of $640 million. The deal is expected to close in the first quarter of 2015. In a press announcement, BrightRoll said that it would continue business as usual afterwards, offering the same line of products, but improving and expanding with Yahoo's investment and support. BrightRoll expects its net revenues to exceed $100 million this year.
In a blog post, Marissa Mayer, Yahoo's CEO, said video is the format that brand advertisers love, and is key to Yahoo. "Video, along with mobile, social, and native, represents a new format of online advertising that has the potential to help us transform and modernize Yahoo’s display business and return it to growth," Mayer wrote.
Once the acquisition is complete Yahoo expects to have the largest video advertising platform in the United State, Mayer added.
The move feels similar to AOL's acquisition of Adap.tv for $405 million in August 2013. In both cases an older online company currently reinventing itself with original online video acquires an online video ad company that emphasizes programmatic buying.
BrightRoll currently works with 87 of AdAge's Top 100 U.S. advertisers and all of the top 15 ad agencies.
Joel McHale, Naomi Campbell, Simon Cowell, and Michelle Rodriguez join Yahoo execs to get the newfront party started.
In its annual ad agency survey, BrightRoll finds that online video ads are going mainstream, with agencies increasingly relying on them.
With its high-profile Live 365 concert series and other major entertainment events, Yahoo has become an expert in streaming live video to large audiences.
At the BrightRoll Video Summit, the company announced a programmatic partnership with DoubleClick and reporting with comScore and Nielsen.
By building a data center in Amsterdam, BrightRoll brings ultra-low latency real-time bidding to European buyers.
Already a leader in original online videos, AOL places a big bet on programmatic online video ad buying.