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Yahoo Reportedly in Talks to Buy BrightRoll for $700 Million

Would help struggling Internet player with video programmatic

Yahoo CEO Marissa Mayer Photo: Getty Images

Yahoo needs to ramp up its programmatic capabilities, and nabbing video advertising player BrightRoll would probably go a long way on that front. This morning, TechCrunch reports that Yahoo CEO Marissa Mayer and her team are in talks with BrightRoll that may result in a $700 million acquisition.

The tech news website states that term sheets have been signed, and if an agreement is met, the deal could fall anywhere between $500 million and $1 billion but will probably end up being $700 million to $725 million.

Yahoo has dealt with recent scrutiny from a Starboard Value investor calling for dramatic changes to the company. And The Wall Street Journal reported on Sunday that Mayer would reveal a major shift in plans during Yahoo's earnings report later today.

BrightRoll, an 8-year-old company based in San Francisco, touts a programmatic video ad platform, connecting buyers and sellers to help them reach cross-platform audiences. The company reportedly did more than $100 million in revenue in 2013, which would be lucrative to Yahoo since it's suffered lagging ad sales in recent quarters.

If the purchase takes place, it looks to be the second largest acquisition of Mayer's tenure, coming 16 months after Yahoo bought Tumblr for $1.1 billion.

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