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A roughly even mix of cash and stock will give Yahoo full control of online advertising exchange Right Media, following their pickup of a 20 percent stake in Right Media in October 2006.

Yahoo Exchanges $680 Million For Right Media

Right Media will continue to operate as an independent division of Yahoo after the deal becomes finalized. Michael Walrath, CEO of Right Media, said at the Right Media blog that Yahoo will not receive any unfair advantage in their Exchange.

"A level playing field is one of the foundations of the Exchange and its success - it remains level," he wrote.

Yahoo provided several reasons on how participants in the Right Media Exchange will benefit from the acquisition, and from Yahoo's increased participation as a buyer and seller in the Exchange:

• Advertisers will have greater inventory and audience options from Yahoo! and other participants in this exchange, as well as increased control and visibility into the buying process.


• Publishers will be able to bundle their own ad inventory with Yahoo!'s inventory and the exchange's inventory - thereby boosting demand and generating the highest returns for each ad placement.


• Advertising networks will reap the same benefits as advertisers and publishers, and additionally, the exchange will benefit those ad networks with unique value propositions, giving them an opportunity to compete with the largest players, thanks to reduced friction and increased transparency.

Terry Semel posted a subtle dig at the Google/Double Click deal on Yahoo's official blog, in talking about the deal.

"We think supply and demand should be regulated by the marketplace, not a closed platform," he said. "We think our open approach is a clear differentiator from others in the industry and will provide significant benefits to publishers and advertisers.

"This acquisition is an important step in our long-term vision to build the industry’s leading advertising and publisher ecosystem."