Yahoo Inc. has announced they will purchase the rest of Right Media Inc. for about $680 million in a move to further boost the reach of their advertising on social networking sites—an area that marketers have struggled to reach.

This announcement demonstrates that both Google (News - Alert) (News - Alert) and Yahoo have chosen to buy, rather than build, their own display-ad networks and is part of the latest in internet companies making significant acquisitions to stake out broader propositions in the changing online ad landscape.

Earlier this month, Google acquired DoubleClick for $3.1 billion.

 

Last October, Yahoo took a 20 percent stake in the privately held, New York-based, Right Media Inc.

Along with today's announcement, Yahoo also announced plans to sell more non-premium display ads on its site through Right Media. Right Media takes a commission on any transaction conducted through its exchange. This can provide a more liquid market, which can potentially increase the demand and prices paid for such inventory. 

Also, Yahoo has said that it wanted to own Right Media outright as a way of taking leadership in the promotion of the exchange model, and provides Right Media with the resources and access to Yahoo ad inventory, to help it expand.

 

One wonders, if Google had not purchased DoubleClick (News - Alert) (News - Alert), would Yahoo have made such a similar acquisition deal with Right Media.

 

According to a news report, shareholders of Right Media will be paid in roughly equal parts in cash and stock, and employee stock options and other equity awards will be assumed by Yahoo, the company said on Monday.

 

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Pradip Bhatacharya is a contributing writer for TMCnet.