Yahoo Acquires BrightRoll, Hopes To 'Enhance' Earnings

Yahoo! Inc. YHOO announced Tuesday the acquisition of BrightRoll, Inc., a leading programmatic video advertising platform.

According to the press release, 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."

“BrightRoll is a large, growing and profitable business with net revenues expected to exceed $100 million this year. Yahoo expects the transaction to enhance its EBITDA."

"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," said Yahoo CEO Marissa Mayer.

The press release noted that BrightRoll “powers digital video advertising for the world's largest brands, including 87 of the top 100 US advertisers and 18 of the top 20 advertising technology companies. The platform enables advertisers to reach 4 in 5 video viewers online and consistently ranks as one of the industry leaders in ads served. As a result, BrightRoll technology collects and analyzes hundreds of billions of data points monthly enabling real-time decisions that drive ROI for advertisers.”

Yahoo shares were nearly unchanged in the after-hours session, last trading at $49.05.