Yahoo buys Interclick for $270 million
California, USA: Yahoo Inc will pay $ 270 million International Inc. click as it tries to revive its ailing online advertising industry, although search and advertising giant continues to look for potential bidders.
New York-based inter-click purchasing bulk advertising space by major players and sells them to its customers.
The inter-click to buy Yahoo, a firmer foothold in the market for non-guaranteed ad inventory for its own properties and third-party websites to receive, said Stifel Nicolaus analyst Jordan Rohan.
Larger online portals like Yahoo can often sell their ad space through the deals and guaranteed supply of advertising space exceeds demand. Click to include using the Open Segment Manager platform for real-time analysis of user data for targeted advertising, and helps improve efficiency by using non-guaranteed advertising.
"Yahoo needs help (i) better return on non-guaranteed inventory, especially inventory from Yahoo mail," said Rohan.
Yahoo pays $ 9 per share inter-click - a 22 percent premium to close the case on Monday.
Shares of Sunnyvale, Calif.-based Yahoo fell about 5 percent in afternoon trading on Nasdaq.
Yahoo, plagued by sluggish growth in its U.S. operations and a big break with the Chinese partner Alibaba, had fired its CEO in September and is exploring strategic alternatives - including a possible sale.
"Yahoo has little influence at this time, they were not CEO, everyone knows they're on sale ... so how much pricing power that has them (potential buyers)?" BGC Partners analyst Colin Gillis said.
"It is a transformational acquisition, but it helps Yahoo in a market, they are not strong ... they have a number of steps to keep pushing forward."
Click on the Internet, with an annual turnover of approximately $ 102 million to help advertisers identify target online through the Open Segment Manager analyzes platform.
Stifel's Rohan said Tuesday the agreement is not the probability of Yahoo selling process to change because "it is small enough to blend into the background."
The sales process depends on the tax efficiency of the disposition of the Asian assets, he said.
Among the interested parties in Yahoo are private equity firms Silver Lake, TPG Capital, Bain Capital, Blackstone, Kohlberg Kravis Roberts, Providence Equity Partners, Hellman & Friedman, Carlyle Group and the Russian technology firm DST Global, apart from rivals Microsoft Corp. and Google Inc.
Yahoo said it expects to offer inter-click to use for its own display advertising business.
The busy commercial IT sector is dominated by many small players and startups, but has some of the biggest trades in years. Google bought DoubleClick in 2007 for 3.1 billion kroner, while eBay bought GSI Commerce for $ 2.4 billion earlier this year.
GCA Savvian Advisors LLC acted as lead financial advisor in connection with inter-click the transaction.
Yahoo shares hit a low of $ 14.75 in morning trading on Tuesday on Nasdaq.
Shares of inter-clicks rose 21 percent to $ 8.94.
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