Yahoo to buy Interclick for $270m

Yahoo! Incorporated, the United States Web portal that is exploring strategic options, agreed to buy Interclick Incorporated for $270m in cash to help advertisers reach online users with more targeted messages.Interclick stockholders will get $9 a share, Yahoo said on Tuesday in a statement. Thats 22 per cent more than the closing price yesterday of New York-based Interclick, which assists companies in marketing to customers based on their online behavior. The tender offer is expected to close by early 2012.Yahoo may use the acquisition to revive sales of display advertising, such as banner ads, which stalled last quarter. The company is seeking a chief executive officer after firing Carol Bartz in September, and has embarked on a strategy review as it grapples with competition from Google Incorporated and Facebook Incorporated.Interclicks behavioral targeting technology could help Yahoo to grow its display advertising revenue faster, an analyst at Needham & Company in San Francisco, Kerry Rice said, who recommended buying Interclick shares. Yahoo could give Interclick more resources to expand into areas like mobile and video advertising.Yahoos share of display ads in the US will be 13.1 per cent this year, down from 14.4 per cent last year, estimates EMarketer Incorporated Facebooks share will climb to 16.3 per cent, up from 12.2 per cent, making it the number one provider.During the third quarter, Yahoos display ad revenue, excluding sales passed to partners, was $449m, little changed from $448m a year earlier. Display sales rose 4.9 per cent in the second quarter.
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