Yahoo Chief Executive Marissa Mayer announced the company’s bid for acquisition of video advertising company BrightRoll, The New York Times reported on November 11.

According to the report, Yahoo plans to purchase the video servicing company for $640 million in cash. Mayer said that the acquisition would further strengthen Yahoo’s position in the video advertising business, as the company has fallen behind competitors Google and Facebook in recent years. This is the second largest acquisition Yahoo has taken since Mayer took over as CEO in 2012.

BrightRoll, a video ad platform that programmatically delivers video ad across many sites, is expected to earn more than $100 million this year.

Acquisitions are designed to accelerate business growth and to build up market foothold against competitors. If you are considering engaging in an acquisition deal, seek the representation of our business law attorneys at Arenson Law Group, PC. Call our Cedar Rapids office at (319) 363-8199 to learn more about all the legal requirements needed in these transactions.

Written by James H. Arenson

Last Updated : November 20, 2014