Yahoo is Hot on Google’s Heels

Yahoo Inc. added another weapon in its high-stakes duel with its richer Internet rival Google Inc. this week by snapping up online advertising exchange Right Media Inc. for US$680 million (euro499.82 million).

Although the cash-and-stock price is well below the US$3.1 billion (euro2.28 billion) that Google recently agreed to pay for online ad distributor DoubleClick Inc., Right Media did not come cheaply for Sunnyvale-based Yahoo.

Last October, Right Media was valued at US$200 million (euro147 million) based on the US$40 million (euro29.4 million) that Yahoo paid to acquire a 20 percent stake in the privately held company at that time. Yahoo is now paying more than three times Right Media’s valuation just six months ago to gain full ownership of an exchange designed to make it easier for Web publishers to show what they have to sell to online advertisers.

Originally posted on Thursday, May 3rd, 2007
Search Marketing.