Yahoo, the tech giant is definitely focused to bring the fame for its once-mighty ad business. For this it has acquired the startup Luminate, a service that focuses on advertising on top of online images. The Internet giant is making all the possible attempts in order to gain a huge business.
The acquisition was confirmed by Yahoo representatives in a reported news. The terms of the deal were not disclosed.
The ad network was founded in 2008 in Mountain View, California and now it has more that 180 million users and more than 6 billion views each month, according the ad company’s website.This service include layering of product, display and text ads over images. The CEO of this company believes that this would definitely benefit both the sides of the deal.
This buyout is just the latest of the president and CEO Marissa Mayer’s more than 40 buyouts since she took the position more than two years ago. Last quarter the display revenue of the company fell 7 percent from the same period last year clearly marking the decline of the advertising business. Yahoo has made this move to gain back the dominance in the online ad world which is now held by young competitors like Facebook.
The move also comes as Alibaba, the Chinese e-commerce company in which Yahoo holds a large stake, has announced to hike the upcoming initial public offering from $60 to $66.Yahoo will retain 16.3 percent stake after the IPO. The IPO is yet to come and Yahoo has a stake as large as 22.6 percent of the company.
The Chinese company wants to make an amount of $24.3 billion through this initial public offering. Yahoo could rake in more than $8 billion before taxes. The internet giant has promised to return half of the IPO proceed to shareholders. The remaining amount could fund other Mayer’s acquisition.