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Programmatic video ad platform Brightroll has been purchased by Yahoo in a $640 million cash deal.
News of the acquisition broke on Yahoo’s Tumblr account where CEO Marissa Meyer talked up the deal by describing video advertising as the next evolution in display marketing technology.
“Video is display 2.0,” she said. “It’s what brand advertisers love. It’s a format that elegantly and easily transitions from broadcast television to PC to mobile and even to wearables. This is why video is a key part of our strategy.”
“It’s one of our four strategic pillars: search, communications, digital magazines and video. It’s also one of our growth businesses: mobile, social, native, video.”
Video is profitable
Brightroll, founded in 2006 by Tod Sacerdoti, the company’s CEO, and Dru Nelson, is already said to be turning a profit and revenues are expected to exceed $100 million by the end of 2014. These financials are set to enhance Yahoo’s own EBITDA.
There has been a certain expectation among the video ad market that it is only a matter of time before rich internet media is linked with TV on a global scale and Sacerdoti feels Yahoo’s resource gives Brightroll more of a platform to do this than it has ever had before.
“We believe the next step for programmatic video advertising as an industry is to extend and standardise globally, make cross-device buying simple and measurable, and complement and integrate with TV,” Sacerdoti said.
The acquisition is expected to conclude in the first quarter of 2015, when it will retain its brand and business. Approximately 400 employees are also expected to retain their roles when the deal goes through.
If you are interested in wearables, please visit IoT Tech Expo Europe in London’s Olympia this December, 2-3, 2015.
