Internet titan Yahoo! – one of an elite handful of mainstream online companies to lift Wall Street’s collective pulse rate with traditional margins of profit– is to acquire search engine advertising specialist Overture Services for $1.63 billion (€1.44bn; £1.01bn) in cash and stock.
The deal, announced Monday, will not see the ink drying on the paperwork before the year end. It values each Overture share at $24.63, roughly a 15% premium over the closing price on July 11. Overture ceo Ted Meisel will report to Yahoo!'s chief operating officer, Dan Rosensweig.
Overture is a specialist in search engine-based advertising systems that directly respond to an individual web visitor’s specific search. The acquisition will inject hormones into Yahoo!'s competitive standing against search engine leader Google and Microsoft’s MSN.
Yahoo’s Rosensweig told AdAge that search-related services accounted for 19% of Q1 revenues this year and will continue to grow as the industry’s and Yahoo!'s fastest-growing business segment.
Data sourced from: AdAge.com; additional content by WARC staff