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Yahoo Bets Big on Video With $640 Million BrightRoll Acquisition

TIME

A plan by Yahoo CEO Marissa Mayer to turn her Web portal into a hub for video took yet another (expected) step forward on Tuesday, when the company made official its rumored acquisition of video advertising service BrightRoll.

Yahoo said it is paying roughly $640 million in cash for the San Francisco-based company, which was founded in 2006. BrightRoll is expected to produce more than $100 million in revenue this year, according to Yahoo, which added that it will bring on BrightRoll’s roughly 400 employees to join Yahoo’s digital video advertising team. The deal had been expected since TechCrunch reported last month that the two companies were in negotiations.

“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,” Mayer said in a statement.

Mayer has come under fire recently for her acquisition strategy…

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