Yahoo’s growth has been slow recently and its ad revenues have been steadily declining, the purchase of the digital advertising service BrightRoll for $640m will do wonders for the company. Video Advertising is one of Yahoo’s biggest growth opportunities and BrightRoll fits perfectly into their larger picture. BrightRoll has done astoundingly well netting above $100m in revenue this year doing online video advertising for some huge brands. This purchase guarantees a boost in Yahoo’s growth.
This acquisition is Yahoo’s first major purchase since it acquired $9.4 billion from its sale of its stakes in Alibaba. This purchase combined with the purchase of Tumblr seems to indicate that Yahoo is taking all the steps in the right direction. Unfortunately,Investors didn’t seem as enthusiastic about this deal, Yahoo’s stock dipped 3 cents to $49.02.
Yahoo seems to be taking the right steps forward but it’s going to be a rough trip, they have been constantly criticised for their purchases not paying off but according to me these deals will eventually pay off.
I hope to see Yahoo do well in the future, since it’s a name that has some nostalgic value to it, for me at least.
References:
http://www.bbc.com/news/business-30015526
http://abcnews.go.com/Technology/wireStory/yahoo-buys-digital-ad-service-brightroll-640m-26843760