Yahoo! acquires online video service

Yahoo! announced that it has acquired online video service Maven Networks for $160 million (£81 million).

The impending deal was originally reported in January, but this was overshadowed by news of Microsoft´s unsolicited $44.6 billion (£22.6 billion) takeover bid.

The proposition was rejected by Yahoo´s board on Monday (February 11th), with the company saying that it was worth more than the amount offered.

Yahoo´s new acquisition will increase the company´s profile in the web video space, and help expand its online advertising network.

An increasing number of people are watching news and entertainment of the internet, meaning that online video advertising is on the rise.

Research group eMarketer have projected that internet video ad spend would triple during the next three years.

Tim Cadogan, senior vice president of marketing products for Yahoo!, commented: "We think video is going to become the third leg of the advertising stool."

Yahoo achieved a 3.4 per cent share of the US online video market in December.

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