In October Yahoo purchased 20% of the 4-year-old company, Right Media, for $40 million.
Yesterday Terry Semel, Chairman and CEO of Yahoo Inc announced they have agreed to purchase the remaining 80% for another $680 million.
Semel’s post Democracy and the online ad states “… I believe has the potential to dramatically enhance Internet advertising. We hope to revolutionize the way ads are bought and sold on the Internet and, in turn, drive more value for advertisers, publishers, and partners.”
In One Giant Leap for the Exchange, and for Interactive Advertising Right Media Founder and CEO, Michael Walrath, claims “Itâ€™s important to reiterate publicly that the acquisition will in no way afford Yahoo! any unfair advantage in the Exchange. A level playing field is one of the foundations of the Exchange and its successâ€“it remains level. The fact that the Right Media Exchange will operate as an independent division of Yahoo! ensures this.”
In the end the advertiser must determine if these buys make sense for them.
Another start to another wild week, have a great one!