Wednesday, 19 November 2014

Yahoo Buys Video Ad Service BrightRoll for $640 Million

Yahoo’s senior vice president of ad technology, Scott Burke and Sacerdoti has confirmed the news about the deal between Yahoo and Bright Roll. According to Scott, this deal certainly raises curiosity and raises concerns about the bet that the company has taken over video.

According to Scott Burke, although there are speculations and possible resistance, this deal can be easily considered as one of the biggest acquisition that has been done by the company. The first biggest acquisition was the Tumblr deal wherein the company has paid a whopping $ 1 Billion. Scott also stated that this deal with be combining the data with Bright-Roll’s programmatic video ad marketplace and Yahoo’s premium ad inventory.

According to Sacerdoti, this deal doesn’t change the fact that Bright roll will still continue their work with the non-yahoo publishers according to the advertisers expectation. Scott wanted to ensure that the power of Bright-Roll’s technology gets illustrated and for this he highlighted the amount of ads that are currently being served at this platform.

So what will happen? 

Yahoo is expected to be joined by 400 plus Bright Roll team and this will be followed by the association of the management of the company as well. At present Scott Burke from Yahoo has denied to comment and give any information about the position that will be given to Sacerdoti; he stated that he will be joining them as the CEO of Bright-Roll.

About BrightRoll: 

Bright-Roll was founded by Tod Sacerdoti in the year 2006, who is also the present CEO of the company. The Company has been successfully able to raise $ 40 Million through funds from investors like Scale Venture Partners, Adams Street Partners, Comerica Bank, Trident Capital, True Ventures, Michael Tanne, KPG Ventures, Fabrice Grinda, Jeff Clavier and Auren Hoffman.

According to Marissa Mayer, who is the CEO of Yahoo, video is currently one of the main areas of growth for the company apart from advertising and mobile and social media. They are expecting their video ad platform to become the largest platform in the United States of America post this acquisition. According to Mayer, they are expecting Yahoo to receive beneficial effects on their performance as Bright-Roll received nearly 2 million ad request every day and the company hopes to generate nearly $ 100 Million in net revenue/year.

Yahoo confirmed on Tuesday that they have paid a whopping $ 640 Million for San Francisco startup. This will help the customers to sell and buy video ads on mobile devices, websites and TVs. The company is hoping to reinvent banner ads in the entire process. At present the digital video advertising has taken shape of a very serious business. By the end of the year 2014, the web video ads market is expected to touch $ 6 Billion. This is nearly expected to increase by 56 % in 2018 and will touch $ 18 Billion mark.

The company wants to use this new strategy to the maximum potential and to extract the best from the market.

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