Industry Sources: Yahoo Will Get Almost Nothing For Selling Its Ad Tech Business

scott thompson yahoo

Photo: Yodel Anecdotal

After Kara Swisher broke the news that Yahoo was selling off its ad tech platforms, we decided to call around to a few industry sources and see what they were hearing.They confirmed Swisher’s report. Yahoo is trying to unload it ad tech platforms because the company is focusing on two things now: media and audience, or data.

Its ad tech platforms, Right Media, and APT, don’t fit into either of those things, so it’s time to sell them or shut them down.

Our sources don’t know who would buy the platforms. At this point they’re not very valuable. The technology works fine enough, but it’s been passed by rivals. And with a “for sale” sign hanging on them, one source said Yahoo would get less than $100 million.

Swisher floated Microsoft and Google as possible destinations for Yahoo’s ad tech, but one of our sources shot down both of those companies*.

Yahoo might end up just shutting down the businesses altogether. A report from Evercore Partners said Yahoo is losing ~$120 million a year on ad tech. There’s no point in keeping that going.

Related to all of this, one our sources says Interclick, the company Yahoo just bought in the fall, is going to become much more important. It will be in charge of all the audience/data parts of Yahoo’s business.

*Update: After writing this post, we heard from another source who thinks Yahoo will sell the businesses for over $100 million to Google.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.