Yahoo buys video ad service BrightRoll for $640m

Technology giant Yahoo said it will buy digital video advertising service BrightRoll for $640m (£402m). The move would allow Yahoo to grow its video advertising platform, "making it the largest in the US", the firm said.

BrightRoll does automated online video advertising for some of the world’s biggest brands and its net revenue is expected to exceed $100m this year. A jump in video advertising would also help offset Yahoo’s slowing growth and boost declining display ad revenues.

"Here at Yahoo, video is one of the largest growth opportunities and BrightRoll is a terrific, strategic and financially compelling fit for our video advertising business," said chief executive Marissa Mayer on Tuesday. The acquisition is also Yahoo’s first major purchase since receiving $9.4bn in September from selling part of its stake in Chinese e-commerce giant Alibaba. – BBC