Originally posted on TechCrunch:
Yahoo just announced that it's acquiring video ad company BrightRoll for $640 million in cash.
We reported last month that a deal was in the works, with a price of around $700 million, but both companies declined to comment.
In a just-published blog post about the deal, Yahoo CEO Marissa Mayer said that video is one of the company's key growth areas (along with mobile, social and native advertising), and that the acquisition will make Yahoo's video ad platform "the largest in the U.S." She also said that BrightRoll is profitable, receives 2 billion ad requests each day, and expects to bring in $100 million in net revenue this year (so the deal should have a positive effect on Yahoo's earnings).
More broadly, Mayer wrote that online video advertising is becoming increasingly fragmented:
BrightRoll provides an effective solution aggregating high-quality publishers together into a unified network and utilizing programmatic...
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