As Marissa Mayer, Yahoo’s CEO, explained in a blog post announcing the purchase, “This acquisition will accelerate the growth of both companies — we can help BrightRoll scale to even more advertisers globally, and they can bring their tremendous platform offering to Yahoo’s advertisers.”
Currently, BrightRoll works with numerous top ad agencies and brands to power their digital video campaigns. Tod Sacerdoti, the CEO and founder of BrightRoll, will join Yahoo with the acquisition, along with the entire (approximately) 400 person BrightRoll team.
This comes after Yahoo’s Q3 2014 earnings exceeded Wall Street expectations, as the company wound up with $1.09 billion in revenue compared to the projected $1.04 billion. It also follows the company selling its share of Alibaba, providing it with plenty of extra financial padding for such an acquisition.
This is the latest acquisition in the video ad-tech space, following AOL’s acquisition of Adap.tv, Facebook’s acquisition of LiveRail, and RTL Group’s acquisition of SpotXchange. All of these companies regularly appear in the top five slots in comScore’s monthly rankings of US video advertising providers.