Mayer sees $640M BrightRoll buy as potentially transformative for Yahoo

Yahoo's 'transformative' buy... BrightRoll

Yahoo is continuing to invest big in its video future, paying $640 million for programmatic ad platform BrightRoll, a deal that has been rumored for weeks.

The purchase – using funds from its Alibaba windfall – gives it the ability to sell video ads across devices in real-time to brands and agencies.

Yahoo is hoping its expanded focus on video and ad sales can offset declining Internet ad prices and help it generate some growth, which has been had to come by for the beleaguered Internet portal.

BrightRoll has been operating in the black and is expected to top $100 million in revenue this year, good news for Yahoo’s bottom line.

The deal makes Yahoo’s video ad platform the largest in the United States, the company said in a statement on Tuesday.

“Video, along with mobile, social, and native, represents a new format of online advertising that has the potential to help us transform and modernize Yahoo’s display business and return it to growth,” Mayer wrote in her blog post.

Mayer said the buy dovetails with Yahoo’s strategic focus on video, which is feels is a growth business that can help it modernize its display business.

Yahoo in Q3 saw big growth in mobile and projected its Tumblr business would grow to be a $100 million business for Yahoo in 2015.

“We need to hit equally meaningful milestones for video,” said Mayer.

Mayer said the purchase was “an important step” toward a “transformation to return our iconic company to greatness” that would translate to shareholder value.