Yahoo buys interclick for $270 million
Yahoo said that it has acquired behavioral targeting network company Interclick for $270 million in cash. The acquisition will enhance its data-targeting and optimization capabilities.
As per the proposed bid offer, Yahoo has offered Interclick shareholders $9 per share.
The news of the acquisition comes at a time when Yahoo continues to search for a new CEO after the board fired ex-CEO Carol Bartz, and pursues a strategic review where it is exploring options to sell parts or all of the company. There are rumors that the company may sell its Asian assets, Yahoo Japan and its 39 percent stake in Alibaba.
Currently Tim Morse is holding the responsibilities of the CEO at Yahoo.
According to industry analysts, the acquisition will help Yahoo’s ailing digital advertisement business that has suffered due to increased competition from Google and Facebook. Recently, Yahoo was also exploring an ad partnership with Microsoft and AOL.
“This investment underscores our focus on enhancing the performance of both our guaranteed and non-guaranteed display business across Yahoo and our partner sites,” said Ross Levinsohn, EVP, Americas region in a statement. “Interclick’s innovative platform will allow us to expand its targeting and data capabilities to deliver campaigns with stronger performance metrics,” he said.
According to Beacon Equity Research, the merger of Yahoo’s advertisement department with that of Interclick also gives Yahoo more executives who can work on maximizing the value of Yahoo’s advertisement space. Interclick has around 200 employees and the company reported revenue of $53 million in 2011.
The companies expect the tender offer to close by early 2012.
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