Yahoo Spends $270 Million On Interclick


Yahoo may be undergoing talks for a possible buyout from Google, but that isn’t stopping the number two most used searched engine from doing a bit of acquiring of its own. Reports are that Yahoo has successfully acquired Interclick, the 4 year old data-driven company which helps to analyze and evaluate the most responsive audiences for marketing using digital media.
Although the $270 million paid might seem a lot for a company that’s a mere 4 years old, the value to be gained by Yahoo is potentially huge. Presently, Yahoo makes around $600 million a year from remnant ad space (unsold inventory) and many are speculating that with Interclick as a part of Yahoo’s overall ad monitoring machinery, that $600 million could very well double—or at the very least have a 50% improvement.
This purchase may also help improve Yahoo’s value in the eyes of a potential buyer and given that Google (the current suitor) is in the search marketing space, having Interclick as part of an overall package is strategically sound. All in all, the acquisition of Interclick adds to Yahoo’s recent foray into high profile acquisition. The company acquired TV tagging start-up Internow back in April for a reported $30 million.
It will be interesting to see how the talks with Google develop and what offer if any, is put on the table.
Do you think Google will succeed in acquiring Yahoo? Share your thoughts on the possible acquisition in the comments below.
source: http://www.sitetrail.com/2011/11/06/yahoo-spends-270-million-on-interclick/

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