It has been recently reported that Yahoo is interested in acquiring BrightRoll (a company whose platform specializes in the management and automation of video advertising campaigns) to the tune of ~$700 million. While this looks good on paper, the true nature of this acquisition is not so cut & dry. The benefits that BrightRoll could immediately provide to Yahoo are clear, but what is not so clear is what Yahoo is truly expecting to gain from this. No doubt adding BrightRoll will give Yahoo a valuable asset in programmatic advertising, which most agree is the immediate future of online and digital advertising. And based on BrightRoll's track record (half of the top 50 publishers and over 80 of the top 100 advertisers currently use their platform in some form), it gives Yahoo an established and well-regarded partner to enter into the mix with.
The bigger problem that Yahoo faces going forward is not keeping up with the Jonses' (read:Google), but not getting kicked completely off the block. Yahoo's fundamental problem is not their inability to merge new technologies into their plans for the future; trying to stay relevant to their user base is. With this being the primary issue, just how much of a true impact BrightRoll could have for Yahoo might be overshadowed by the bigger problem. With lingering questions in leadership from their investors, as well as a string of failed attempts to acquire and facilitate a broader reach in digital & video advertising for their own content, the full potential of this possible deal may never be realized.