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Article

Title: Yahoo Agrees to Pay $680 Million to Take Control of Right Media

Author: Delaney, Kevin J Article Type: Company
Source: Wall Street Journal, v249 n100 pA3(1) Publication Date: Apr 30, 2007
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

Yahoo! Inc. will acquire the remaining 80 percent of Right Media Inc. that it does not already own in a deal worth $680 million. The deal with the closely held company indicates how Internet firms are gambling on new approaches to extend their advertising reach on websites. Right Media was founded in 2003, and it runs an online advertising exchange. The exchange is designed to offer a virtual market where the buyers and sellers of Internet advertising can find one another easily and execute transactions. The exchange operates similarly to a stock exchange for shares. After Google Inc.'s $3.1 billion acquisition of DoubleClick Inc., an online advertising services company, the purchase by Yahoo! of Right Media emphasizes how Internet firms are using major acquisitions to take broader positions in the ever-changing online advertising environment. DoubleClick has plans to open its own advertising exchange as well. Yahoo! sees its deal with Right Media as a way to increase its sales of non-premium advertisements. These include ads that appear on the Yahoo! site next to content created by users. Yahoo! also hopes the deal will aid in its attempts to broker advertisements on the websites of other publishers. According to Terry Semel, chief executive officer of Yahoo!, the firm will be able to generate higher returns for its own non-premium ad inventory and expand its ad network to include the more than 1,000 publishers that had direct relationships with Right Media.

Companies:
DoubleClick Inc Right Media Inc
TecTerms Yahoo! Inc

Products:
B2B Marketplaces (Business to Business Marketplaces)

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