Yahoo! Inc. (NASDAQ:YHOO) gives its investor a whole lot of ‘bright’ rays of hope, as reports of the widely debated tech company acquiring the vide advertising service, BrightRoll, surface the market. Brittany Umar of TheStreet, reported on this new development as Yahoo!’s core investors find yet another reason not to value the company’s core operations at $0.
“Yahoo! is reportedly in talks to buy cross-platform digital video advertising service BrightRoll for a price in the range of $700 million to $725 million. Yahoo! Inc. (NASDAQ:YHOO) is focusing its acquisition strategy on companies that can build up its revenue-generating ability, according to TechCrunch, which reports that term sheets may have already been signed […],” reported Umar.
There is a considerable pressure on Yahoo! Inc. (NASDAQ:YHOO) to act wisely with regards to nearly $9 billion that the company received from selling a part of its stake in Alibaba during the Chinese e-commerce’s IPO. It’s important that the company comes through this, even more so than the earnings report that was released yesterday.
Although Yahoo! came out of that predicament smelling like freshly cut grass, since it beat analyst’s estimates, something that had been unheard of in a long time. This fresh enthusiasm will only prove to be short lived if Marissa Mayer makes another acquisition like Tumblr, which has failed to add significantly to the company’s top line.
On the outset, BrightRoll looks like a perfect candidate with its stronghold in the video advertising segment, according to Umar. If the deal goes through, it is hoped that Yahoo! Inc. (NASDAQ:YHOO) will not sink BrightRoll’s ship along with itself.
“[…] BrightRoll says it powers digital video advertising for 85 of the top 100 U.S. advertisers and 18 of the top 20 advertising technology companies. According to CrunchBase the firm has received more than $40 million in investing from 10 investors. BrightRoll surpasses AOL and Google in terms of video ad reach, ranking number one in comScore’s August 2014 online video rankings report […],” informed Umar.
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