Sunnyvale, US – Although, in the last few years, Yahoo’s M&A (Merger & Acquisition) appeared to be a little slow; but yet again Yahoo (NASDAQ: YHOO) quietly acquired another company in Europe. This time, Yahoo acquired Germany’s Media Group One for $23 million in the first quarter of 2015.
In the last 1 decade, Yahoo has acquired more than 80 companies around the globe. Media Group One seems to be 81st company being acquired by Yahoo. Yahoo had announced on December 11th, 2014 that it would acquire German company, Media Group One. With this acquisition, Yahoo has strengthened its business in Europe also. Yahoo is trying to build its advertising business with Media Group One, which is a media and marketing house; combining the activities of Vertical Network Media and SnackTV under one roof.
Media Group One company
Media Group One (MGO) is a media sales house for internet pioneers, premium publishers and TV professionals. It is a pioneer in combining verticals with videos and provides its services in 3 Mega-Verticals, namely, Entania, Fabalista and Zolanis. Along with these Mega-Verticals, MGO also has 16 themed channels.
The deal was less noticed in the US; although Yahoo has released and posted the news in Yahoo’s Germany press site. However, the acquisition price was not known, when the deal was officially closed in January. But when Yahoo filed the 10-Q form in May; only then it came to the notice that the acquisition price paid by Yahoo was $23 million.
Yahoo wants to increase its business in the Europe and specifically in Germany. In the last quarter and a half, Yahoo’s international earnings have declined with respect to the earnings of the respective quarter and half of last year. At the same time, it has also been found in the Yahoo’s report that their many international properties have been shut down. The recent European closures that affected the revenue of Yahoo include Yahoo Movies, Yahoo Music, Yahoo TV and Yahoo Autos in various countries.
Yahoo’s strategy by acquiring MGO is to increase its operation, as MGO is one of the 10 largest marketing and ad agencies. MGO in its 3 Mega-Verticals and 16 special interest channels have more than 18 million unique visitors. Also, the SnackTV content has over 340,000 videos from over 200 premium licensors creating a tight grip in the advertising market of the Germany.