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International: Yahoo! to buy out Right Media Exchange, transform online advertising

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International: Yahoo! to buy out Right Media Exchange, transform online advertising

Yahoo! Inc. has announced its plans to acquire Right Media Inc., creator of the Right Media Exchange, for $680 million. With this acquisition, Yahoo! aims to execute its long-term strategy to transform the way online advertisers connect to and engage with their customers – both on and off their network.

Right Media Exchange is a player in the online advertising field, and this acquisition might help Yahoo! gain a big advantage in the online ad market. "This acquisition will further our goal to create the industry’s most open, accessible and vibrant advertising marketplace, which will help democratize the buying and selling of digitally enabled advertising," said Terry Semel, Chairman and CEO of Yahoo! “This acquisition is an important step in our long-term vision to build the industry’s leading advertising and publisher ecosystem,” he added.

Commenting on the move, Michael Walrath, CEO and founder of Right Media, said, "We are very excited by the prospect of becoming part of Yahoo!, the market leader in display advertising, as it looks to revolutionize the media buying and selling landscape.”

The official communiqué describes Right Media’s open exchange as a frictionless model where buyers have equal opportunity to engage with the largest, most valuable audiences and to extract the maximum value from their campaigns and sellers can access an enormous pool of advertisers and foster competition for their inventory to maximize revenue.

Under the terms of the agreement, which follows Yahoo!'s 20 per cent strategic investment in Right Media in October 2006, Yahoo! will acquire the remaining equity interest in Right Media for approximately $680 million.


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