World leading digital media organisation, Yahoo!, has confirmed that it is to acquire the business of 5to1, an online alliance of publishing companies who seek to fill advertising space, with a focus on premium brands. The financial aspects of the deal have not been disclosed, but Yahoo! has confirmed that 5to1 will be incorporated into the company's Ad Marketplaces group when the deal is finalised later this year.

Yahoo! provides Internet services all over the world, and is well known for its online search engine, mail, news, advertising, mapping and video sharing services. In 2008 an offer of circa $47.5 billion was made for the company by Microsoft, but was rejected by Yahoo! The companies have since worked together on a range of projects, although there are now no plans for merger discussions.

Using its publisher controlled platform technology, Los Angeles-based 5to1 offers its high-end publishing and advertising clients the opportunity to buy or sell advertising space in a controlled manner, eliminating concerns over low-quality, brand-damaging adverts for the publisher, and ensuring that advertisers reach appropriate readers.

As a result of the acquisition, Yahoo! will be able to expand upon its advertising presence and enhance its relationships in the premium publishing industry.

James Heckman, CEO and co-founder of 5to1 commented: "We're thrilled for our media partners that Yahoo! is backing our platform and the alliance. The 5to1 team is looking forward to joining Yahoo! at the close of the transaction and being part of its global reach."

Yahoo! senior VP of Advertising Sales for North America, Wayne Powers, added: "5to1's innovative platform and premium private marketplace will further enable Yahoo! to extend our advertising leadership. 5to1 provides additional access to publishers and unlocks the value of unsold inventory for premium brand advertisers."

Author: Lee Marriott, Analyst