Yahoo has reportedly assessing prospective to expand its brand advertising business by agreeing to acquire online ad network, BlueLithium, the fifth-largest advertising network in the US, for about $300 million in cash. California based online advertising firm BlueLithium provides banner advertising on a network of about 1,000 websites. Consequently, the acquisition could be proved to a significant help to extend Yahoo’s ad reach as it persistently challenging its competitors Google Inc. and Microsoft Corp.’s online ad offerings.
The acquisition is also expected to help Yahoo in its already successful brand advertising business with a better expertise in direct marketing. However, Yahoo has literally struggling over the past year, reporting substandard second-quarter financial results and a decrease in net income over the same period in 2006.
Senior vice president of Yahoo Publisher Network, Todd Teresi, speaking over the deal has said, ‘the deal was the next step in Yahoo’s strategy to transform how advertisers connect with publishers.’ Apart from this effort, Yahoo has recently acquired Right Media Exchange Inc. for about $700 million and upgraded its system for distributing ad links tied to search requests.
The latest deal is expected to close at the end of the fourth quarter of 2007.