Yahoo is lining up an acquisition bid for video adtech platform BrightRoll as the company continues to accelerate its video strategy, TechCrunch reports.
Sources tell TechCrunch that term sheets have already been signed and that the deal is likely to be worth within the region of $US700 million to $US725 million, although it could be valued as much as $US1 billion.
BrightRoll acts as an intermediary service for both brands and publishers, serving video advertising across, desktop, mobile and connected TV devices.
It works with clients including Mars, Honda, and Kellogg to help their marketers plan, target, optimise, and measure their digital video advertising campaigns across 25 of the top 50 online video publishers.
Researchers at comScore this year rated BrightRoll’s ad platform as the largest in terms of reach to unique US video viewers — 95% of all video viewers online — through its partnerships with ad networks, agency trading desks and demand side platforms (DSPs). It scored ahead of Specific Media, AOL, LiveRail, and Google.
If true, the TechCrunch report suggests Yahoo is looking to take Google and its online video platform YouTube head-on in the online video advertising space. Several Yahoo executives have previously told Business Insider that Tumblr — which Yahoo bought last year for $US1.1 billion — should become the company’s answer to YouTube.
In March this year Re/code reported Yahoo was working on a plan to lure some of YouTube’s most popular stars over to Tumblr. Yahoo’s sites are only the fourth largest in terms of online video views, with Google, Facebook and AOL coming ahead, according to comScore data, which highlights the need for it to improve its content in order to migrate users to its platform.
Acquiring BrightRoll, which last year was said to be bringing in $US100 million in revenue, would help monetise that potentially lucrative video content.
BrightRoll has already raised more than $US40 million from investors including Adams Street Partners, Scale Venture Partners, Comercia Bank, True Ventures, Trident Capital, KPG Ventures, Michael Tanne, Fabrice Grinda, Auren Hoffman, and Jeff Clavier, according to TechCrunch’s CrunchBase.
A Yahoo spokeswoman told Business Insider the company “does not comment on rumour or speculation.”
Yahoo has already taken several steps to attempt to improve its video strategy.
In July, Yahoo announced it had bought Israel-based startup RayV, which specialises in streaming high-quality video, for an undisclosed amount.