Today Yahoo! announced that they have bought BlueLithium, an advertising company that displays banners on about 1,000 websites.
Increased competition in the online advertising market between Yahoo, Microsoft, and Google has led to a series of acquisitions by all three companies. Yahoo has struggled over the past year, reporting disappointing second-quarter financial results and a decrease in net income over the same period in 2006. The company has also spent almost a year reorganizing both its top management and its business divisions.
Under the the cash deal, BlueLithium will become a subsidiary of Yahoo! and their services will be integrated into other Yahoo! ad offerings. The deal is expected to close at the end of 2007′s fourth quarter.
This acquisition is expected to strengthen their position in online advertising against Google and Microsoft.