Yahoo Inc. has agreed to buy video-advertising platform BrightRoll Inc. for about $640 million, as the Internet company looks to expand its video efforts.
Yahoo said BrightRoll is expected to have revenue of more than $100 million this year.
The deal, seen closing early next year, will “dramatically strengthen Yahoo’s video-advertising platform, making it the largest in the U.S.,” Yahoo said. According to Yahoo, BrightRoll serves 87 of Ad Age’s Top 100 U.S. advertisers.
BrightRoll will retain its workforce of roughly 400 people.
Yahoo recently pocketed $6.3 billion from the sale of Alibaba Group Holding Ltd. shares. Yahoo has said it plans to return at least half of its cash to shareholders via a buyback or dividend, while others have speculated that the company would look to make larger acquisitions than it has in the past.
The acquisition of BrightRoll is seen as a way for Yahoo to counter AOL’s purchase last year of the Web video-exchange company Adap.tv, which has helped to grow AOL’s advertising revenue. The BrightRoll buy also is seen making Yahoo a more credible player in advertising technology, an area where it is considered to be trailing competitors.
