RSS
Twitter
Facebook
Yahoo! Inc. on Tuesday announced the acquisition of display advertising firm Interclick Inc. for $270 million.
Under the agreement Interclick stockholders will receive $9 per share, 22 percent higher than the company’s closing price on Tuesday.
The deal is expected to closed by early 2012 and Yahoo will likely use the acquisition to help revive their display advertising sales division which saw declining results in Q3 2011 amid the ousting of CEO Carol Bartz and a softening market that has watched both Google and Bing take away further search market share from Yahoo.com.
In an interview with Bloomberg Colin Gillis, an analyst at BGC Partners noted:
“The company needs to improve their display advertising business; it’s not a major acquisition for Yahoo.” Gillis goes on to add, “The deal is not going to change whether buyers are going to come or not.”
News of the acquisition comes after reports began circulating that Yahoo will sell off their Asian assets and redistribute those proceeds to shareholders rather than selling the company off to a group of buyers. Yahoo is also rumored to be seeking the sale of a minority stake in the organization.
After the Interclick acquisition was announced shares in Yahoo fell 4.5 percent to $14.93 while Interclick shares rose by 21 percent to $8.94.
