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Yahoo Buys What It Can't Accomplish Alone

Posted on 4.29.2007
From the "if you can't beat 'em, buy 'em" file", Yahoo will purchase the remainder of online advertising exchange Right Media for $680 million in stock and cash. Yahoo! bought a 20 percent stake of Right Media in October for $45 million and now plans to acquire the remaining 80 percent. They seemed to like what they experienced.

The acquisition will give Yahoo! advertisers and publishers a real-time marketplace to buy and sell display advertising on Web sites (the Panama platform is just for keyword advertising) but that's not really the interesting part of the story. The move expands Yahoo's advertising reach beyond its network of sites and existing group of publishers, something they have all but failed to accomplish alone with the Yahoo! Publisher Network. With just 13,000 sellers (publishers) on the Right Media exchange though, Yahoo still has a long way to go to provide the impression levels of Google, even with Right Media partners such as Fox Interactive and LookSmart.

Many Web insiders are arguing that the purchase will help Yahoo fend off Google and its planned foray into display advertising with the purchase of DoubleClick for some 3.1 billion dollars and I tend to agree. We'll see how this all shakes out.

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