Last October Yahoo (YHOO) bought a 20 percent stake in New York-based online advertising exchange Right Media for $40 million. Yahoo announced today that they now will pay out another approximate $680 million in cash and stock to purchase the other 80 percent of the company.
"The acquisition of Right Media will further Yahoo's goal to create the industry's most open, accessible and vibrant advertising marketplace, which will help democratize the buying and selling of digitally enabled advertising," Yahoo Chief Executive Terry Semel said in a statement announcing the deal.
Yahoo chief financial officer Sue Decker said that the deal was half stock and half cash to make the transaction basically "tax free."
Decker added that Right Media is projected to double its revenue this year to $70 million and turn a profit. At this time Right Media has about 20,000 buyers and sellers that interact in the exchange, which generates around 4 billion impressions a day.
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