SAN FRANCISCO — As Yahoo and Microsoft battle it out over a proposed merger deal, the two tech giants have continued to pursue their own growth strategies though smaller deals.
Faced with the threat of being gobbled up by Microsoft, Yahoo on Tuesday announced a $160 million deal to buy Maven Networks, which helps media companies manage and distribute online video.
The deal was unveiled a day after Yahoo rejected Microsoft’s $44.6 billion merger proposal — and after Microsoft announced its own purchase of Danger, which makes software for handsets. Financial terms were not announced for the Danger acquisition.
Yahoo’s acquisition of Cambridge, Mass.-based Maven highlights the growing importance of online video and Yahoo’s efforts to broaden its advertising network.
In a statement, Yahoo said the acquisition will help the company expand “the video opportunity for publishers” and increase “the efficiency and effectiveness for advertisers.” Yahoo said it has video advertising relationships with more than 75 percent of leading TV advertisers and with other “premium” publishers such as eBay and Comcast.
Maven’s platform is used by other major media companies, including Fox News, Sony BMG and CBS Sports.
Citing estimates from Forrester Research, Yahoo said online video advertising is expected to grow to more than $4 billion in 2011.
Meanwhile, Microsoft said it still has its eye on a bigger prize: Yahoo. The company said Yahoo’s rejection of its bid was “unfortunate” but strongly suggested that it will continue to pursue the Web portal.
