Yahoo Acquires interclick For $270 Million

Yahoo announced Tuesday it has agreed to acquire behavioral targeting network interclick for about $270 million in cash. The Web portal said the deal, in which it valued interclick at $9 a share, would enhance its data targeting and optimization capabilities, and provide new premium inventory supply drawn from disparate sources.

"This investment underscores our focus on enhancing the performance of both our guaranteed and non-guaranteed display business across Yahoo and our partner sites and, combined with Yahoo's reach and advertising leadership, will deliver a powerful solution for marketers," said Ross Levinsohn, EVP, Americas region.

 

Yahoo’s display ad growth has slowed significantly in the the last two quarters, in part because of challenges monetizing remnant inventory.Tim Morse, Yahoo’s interim CEO, conceded in the company’s third-quarter conference call that it needed to improve yield on its non-guaranteed ad inventory. The addition of interclick’s optimization technology and ad sales force could help Yahoo address that issue.

Through its Open Segment Manager (OSM) data-valuation platform, interclick aims to help marketers boost the effectiveness of their online display and video campaigns. The company ran into legal problems earlier this year when it was sued by a New York resident for allegedly violating her privacy by using “history-sniffing” technology. A federal judge in August threw out a potential class action against four major advertisers accused of working with interclick to use the history-tracking techniques, but the lawsuit against interlick was not entirely dismissed.

Interclick founder and CEO Michael Katz said in a statement that the combination of Yahoo's premium data and inventory with the company’s platforms will create “tremendous value” for clients. The deal is expected to close by early 2012.

The transaction comes as Yahoo continues to search for a new CEO and pursues a strategic review, which could lead to the sale of parts or all of the company. Given the turmoil surrounding Yahoo, analyst Ben Schachter of Macquarie Research said the timing of the interclick acquisition was surprising. But in a research note Tuesday, he concluded that the deal wouldn't have a direct bearing on a larger Yahoo deal because of its relatively small size.

Tags: yahoo
Recommend (1) Print RSS
  • Aereo Declares Bankruptcy

    Online video distributor Aereo, which suspended operations three days after its Supreme Court defeat in June, said on Friday that it filed for bankrputcy. CEO Chet Kanojia says in a post on the company's blog that the move “will permit Aereo to maximize the value of its business and assets ...
  • Tom Noble Moves From BMW Australia To Oversee Mini U.S.A. Marketing .

    Mini U.S.A. has tapped Tom Noble, a marketer at BMW Australia, as department head, Mini Brand Communications. Noble, who will handle all brand positioning duties for Mini in the U.S. at the company's U.S. headquarters in Woodcliff Lake, N.J., replaces Tom Salkowsky, who was shifted overseas to be department head, ...
  • Sources: Steve Shannon Out As Top Hyundai Motor America Marketer

    Sources close to the company say Steve Shannon, VP marketing, is departing Hyundai Motor America. No confirmation from HMA or Shannon just yet. The General Motors alumnus, who tied up his 25 years at GM as marketing chief at Cadillac, was hired by the Orange Country, CA-based marketer in 2011. ...
  • Appeals Court To Reconsider 'Innocence Of Muslims' Takedown Order

    The 9th Circuit Court of Appeals said today that it will reconsider whether to order Google to remove the clip 'Innoncence of Muslims' from YouTube. The court also said that the original opinion in the case, issued in February by a three-judge, won't serve as precedent within the 9th Circuit. ...
  • Obama Urges FCC To Classify Broadband As Utility

    In his strongest statement this year on net neutrality, President Barack Obama today urged the Federal Communications Commission to reclassify broadband service as a utility. Doing so would allow the FCC to impose the same kinds of common carrier rules that require telephone companies to put through all calls. “The ...
  • Nissan Taps Hatami To VP Sales, U.S.

    Nissan has named Derrick Hatami to VP, sales, for the U.S., reporting to Fred Diaz, senior vice president, Sales & Marketing and Parts & Service U.S.A. Effective Jan. 13, Hatami will lead the Nissan divisional sales and vehicle operations, light commercial vehicle and fleet functions. Hatami will be accountable for ...
  • Paul Edwards, Chevrolet's New VP Marketing

    Chevrolet has appointed Paul Edwards as new U.S. VP, Chevrolet marketing, replacing Chris Perry, who resigned last month. Edwards will report to Chevrolet Global Chief Marketing Officer Tim Mahoney, effective immediately. He has been executive director of General Motors’ Global Marketing since 2010, responsible for global media operations, agency management, ...
  • NASCAR Promotes Lynch To VP, Green Innovation

    NASCAR is promoting Dr. Michael Lynch to VP, green innovation. The elevation of his role from managing director to VP is meant to further NASCAR’s efforts to grow the sport’s green platform. As he has done over the past five years at NASCAR, Lynch will champion the adoption and implementation ...
  • Toyota Changes Corp. Comms. To Reflect "Total Toyota"

    Toyota has made new appointments in its North American corporate communications group in line with the company’s recently announced “total market” strategy, called Total Toyota or T2. The corporate communications function will now place an increased emphasis on establishing deeper relationships with influential Hispanic and African American communities in North ...
  • Dealertrack Buys Dealer.com

    Dealertrack Technologies has entered into a definitive agreement to acquire Dealer.com, which provides marketing and operations software and services for the automotive industry. Dealertrack will acquire all the equity of Dealer.com for approximately 8.7 million shares of Dealertrack's common stock and $620 million in cash. Upon closing, Gibbs will become Executive Vice President and Group ...
>> Raw Archives