Yahoo! snaps up BlueLithium

Yahoo! has announced it is to buy behavioural targeting business BlueLithium for $300m (£150m). The acquisition of the fast-growing online advertising network is set to strengthen Yahoo!’s armoury in the battle against Goolge.

BlueLithium, formed in 2004, specialises in analysing Web data that enables companies to closely target advertisements.

The deal is the latest in a series of moves and management restructuring in recent months for Yahoo! as it seeks to regain lost ground on other Web search providers, including market leader Google.

Key executives have left, including former chief executive Terry Semel, who was replaced by Jerry Yang in June. Yang immediately initiated a ‘strategic plan’ to improve Yahoo!’s offering to advertisers.

Commenting on the acquisition, Yang says: “BlueLithium’s products, technology and team will be an integral part of our drive to build the industry’s leading advertising and publishing network.”

BlueLithium will become a wholly owned subsidiary of Yahoo! Chief executive Gurbaksh Chahal will remain for an interim period while the transaction is completed.

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