Looks Like Yahoo Is On The Move Again

Writing by Nick Stamoulis on Wednesday, September 5, 2007 Leave a comment

The search engine game has turned into who can acquire the most assets. Welcome to the corporate Internet.

Yahoo! recently announced plans to buy BlueLithium for $300 million.

(Source) Yahoo on Tuesday said it agreed to acquire ad network BlueLithium for about $300 million in cash, a move that will help the Internet giant sell advertising across a greater number of web sites.

The acquisition was expected to help boost Yahoo’s effort to develop a third-party advertising network, helping the Internet company better compete with rivals such as Google and Microsoft.

Do I agree that this acquisition will help Yahoo! be more competitive? Yes. Will it help consumers? Time will tell.

Of course, there are three parties at play in such moves (not counting the company being bought).

  • There’s the acquiring company (Yahoo!)
  • There’s advertisers
  • The advertising viewing audience

At Google, the advertising viewing audience would be searchers making search queries. That’s not necessarily true at Yahoo! In Yahoo!’s, it really means users of services, including search. No doubt, Yahoo! will win with this acquisition. Advertisers, too, will probably win. But what about consumers of Yahoo! services? If they’re trying to get away from the kind of interruptive advertising that this will likely create, I doubt that they will be big winners. Yahoo!’s goal, it seems, is to bombard their users with advertising. Read:

(BL) The addition of BlueLithium is the logical next step in creating the largest and most effective online ad network globally, which also includes inventory on Yahoo!’s owned and operated properties, the Yahoo! Publisher Network, and the Right Media Exchange.

Sounds to me like it’s all about the money. But is that bad?

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