Yahoo! Buys RightMedia Outright

The latest news in the never ending fencing match between Google and Yahoo! the latest news is that Yahoo! will acquire the remaining 80 percent of RightMedia for $680 million. Yahoo! has taken it on the chin from Google in the online advertising realm lately but Yahoo! seems determined not to be counted out.

With full control of RightMedia Exchange Yahoo! will solidify their long range plans access a larger pool of sellers and advertisers. Google's Double Click buyout was a real gut punch to Yahoo! and Microsoft, but Yahoo! intends to counter with this latest venture and relationships with major newspapers according to news from Yahoo!

The RightMedia acquisition helps Yahoo! by allowing them to offer their advertisers a much broader network of 19,000 publishers and advertisers. The RightMedia Exchange essentially allows publishers a venue to dispose of non-premium inventory. Yahoo! has never been able to match the effectiveness of Google's AdSense thus far, but basically stays in the game by grabbing any niches that have special needs apparently.

Yahoo!'s strategy appears to be one of maintenance of position rather than any strategic attack on Google's dominance. I find this a little disturbing in that second place at every turn either indicates complacency, lack of resources or a lack of commitment on the part of the world's best known Internet celebrity. Yahoo! has had plenty of time and opportunity to either work their way or buy their way to the top in my opinion.

Adding liquidity and transparency for niche markets is an asset to be sure. Perhaps Yahoo! reflects a certain conservative business anthem in all these dealings much like investors and business in the physical world. There are those who take chances, and there are those that plod along raking in their stock dividends and T-bond interest, while others hammer at the door of success incessantly. Perhaps there are just two kinds of business models after all; maybe third place is the place to look for someone up to the task of competing with Google?

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