Yahoo! buys Right Media for $680 million

Telecommunications Mergers & Acquisitions, June, 2007 by Anonymous

Yahoo! has decided to give a stiff competition to Google by purchasing online advertising exchange Right Media for $680 million. Google had paid $3.1 billion for online ad distributor DoubleClick. In October 2006, Right Media was being valued at $200 million. This was based on $40 million paid by Yahoo! to buy a 20 percent stake in the privately held firm.

Yahoo is now willing to pay more than three times the valuation of Right Media from six months ago. Over the next decade, billions of dollars are likely to be spent on the Internet, which would have gone towards other media. Realizing this, the advertising firms are focusing more on visual ads rather than the text-based messages, which have been responsible for the huge popularity enjoyed by the search-driven networks owned...

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