Yahoo to acquire online ad firm Interclick for $270 mn

The acquisition comes when Yahoo is looking to fill the position of its CEO following the firing of former CEO Carol Bartz

PTI | November 3, 2011



Internet giant Yahoo has reached a deal to acquire online advertising firm Interclick for around USD 270 million to expand its market share in the display advertising market.

The New York-based Interclick, which was founded in 2006, designs tools that help the marketers target online customers.

As per the agreement, Yahoo would commence an all-cash tender offer for all outstanding common stock shares of Interclick at USD 9 a piece, taking the total deal value to about USD 270 million.

The tender offer is expected to close early next year, Yahoo said in a statement.

According to market analysts, Interclick's buyout may help Yahoo to increase its market share in the display advertising business, where it has been facing stiff competition from Google and Facebook.

The acquisition comes at a time when Yahoo is looking to fill the position of its chief executive officer following the firing of former CEO Carol Bartz in September and amid speculations of a possible takeover of the company.

With Interclick, Yahoo would acquire unique data targeting capabilities, optimisation technologies and new premium supply, as well as a team experienced in selling audiences across disparate sources of pooled supply.

"This investment underscores our focus on enhancing the performance of both our guaranteed and non-guaranteed display business across Yahoo and our partner sites and, combined with Yahoo's reach and advertising leadership, will deliver a powerful solution for marketers," Yahoo EVP (Americas region) Ross Levinsohn said.

"Interclick's innovative platform will allow Yahoo to expand its targeting and data capabilities to deliver campaigns with stronger performance metrics," Levinsohn added.

"Having worked closely with Yahoo for the past few years, we have a deep appreciation of the quality of the inventory that Yahoo brings to market. The combination of Yahoo's premium data and inventory with our platforms will create tremendous value for clients," Interclick Founder and CEO Michael Katz said.

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