Print 32 comment(s) - last by wordsworm.. on Feb 16 at 8:34 AM

Yahoo buys Maven to shore up online video advertising

Despite the murky outlook for the veteran web property, Yahoo announced today that it had bought online video company Maven Networks. InformationWeek reports that Maven currently serves ads to more than 30 media accompanies including some of the biggest websites on the Internet like Fox News, Hearst and CBS Sports.

Yahoo says the purchase will solidify its position in the emerging online video advertising market and has given Yahoo relationships with more than 75% of the top TV advertisers. Maven isn’t what most would think of as an advertising firm. Maven is involved in testing new ad formats rather than actually selling ads to websites.

Hilary Schneider, executive VP for global partner solutions said in a statement, “Video is projected to be the fastest growing segment of the online ad market, and Maven will significantly help advance Yahoo's strategy, expanding the video opportunity for publishers and increasing the efficiency and effectiveness for advertisers.”

Only time will tell if this Yahoo purchase will help its ailing stock and help bring Yahoo back to its former glory. DailyTech recently reported that Microsoft offered to buy Yahoo for a whopping $44.6 billion, which Yahoo subsequently turned down. That denial led to Microsoft considering a hostile takeover of Yahoo.

Few doubt online video is the future of online advertisements. This was the key point in the Writers Guild of America strike that ripped billions from economy in California. According to a study from Parks Associates released today new multimedia advertising platforms in the U.S. will capture a massive $12.6 billion in revenue by 2012. Broadband multimedia advertising will account for more than $6.6 billion of that figure.

Yahoo is attempting to shore itself up for the future. What is questionable at this point is if Yahoo can hold on until the industry matures and its $160 million purchase of Maven starts pulling its own weight.

Yahoo isn’t alone in the search world when it comes to making purchases of advertising companies. Google purchased DoubleClick in December of 2007 for $3.1 billion. Yahoo countered by purchasing ad company BlueLithium in September of 2007 for $300 million.

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RE: Well done
By Hydrofirex on 2/13/2008 7:40:29 PM , Rating: -1
Ballmer probably would - don't tempt him!

Seriously though, I agree - 3 competitors are better than 2. Especially when one of them owns practically all of the other computing spaces... I mean, it's OK for Microsoft to literally own the desktop computing world, but not OK for Google to mostly own the internet?!? The internet and internet advertising, by it's nature, are going to be infinitely more difficult for Google to monopolize in the long run than it is for Microsoft to do on the desktop.

Seriously, if I was a Yahoo stock owner I would not sell to Microsoft. Maybe it goes against "rational" thought to not take a good deal, but I think it used to be immoral to sell out your principles and beliefs for money - and I believe Microsoft and Yahoo would be bad for innovation, bad for the internets (even the one made out of tubes!), and bad for all of us.


(Once again, I love my many, many, many Microsoft products - even Vista *Gasp*)

RE: Well done
By Oregonian2 on 2/13/2008 7:43:23 PM , Rating: 2
It is better for yahoo to go belly up and just go by the wayside than for them to be incorporated into Microsoft?

RE: Well done
By TerranMagistrate on 2/13/08, Rating: 0
RE: Well done
By omnicronx on 2/13/2008 8:40:31 PM , Rating: 2
The best part being that Yahoo! remains an independent company and not excrement courtesy of Microsoft.
Thats exactly what Google is thinking ;)

RE: Well done
By Some1ne on 2/13/2008 9:15:09 PM , Rating: 2
Thats exactly what Google is thinking

Not really, if Google really thought that Microsoft would simply ruin Yahoo, then they wouldn't be complaining about the deal as much as they are. From the amount of whining they've been doing, it's pretty clear that Google thinks that Yahoo will be a stronger competitor if/when teamed up with Microsoft, not a weaker one.

RE: Well done
By omnicronx on 2/13/2008 10:02:11 PM , Rating: 2
..thats what i was getting at.. Yahoo remaining independent is probably a good thing for Google, not a bad thing. Google has been continuously taking market share from yahoo, I do not see yahoo doing anything significant unless they make a huge turnaround.. but so far Google has always been two steps ahead.

RE: Well done
By wordsworm on 2/13/2008 9:31:14 PM , Rating: 2
You know, if Google was smart, they'd stay out of it. The acquisition would likely destroy its strongest competitor - as was so eloquently put - turning gold into excrement. As to the other poster, Yahoo isn't anywhere close to going bankrupt. They made 660 million dollars so far this year. That's hardly what I'd call a company in trouble.

"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis

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