Yahoo shells out $300m to buy ad firm

Yahoo struck a definitive deal to acquire BlueLithium, the fifth-largest US advertising network, for $300 million, in the latest move to consolidate the behavioural ad targeting market, a Reuters report said.

The Reuters report said BlueLithium is a three-year-old San Jose, California-based company that specializes in the fast-growing market for technology that tracks consumer behaviour as users move from site to site in order to deliver more relevant ads.

The report added that the Internet media giant Yahoo already offers advertisers behavioral targeting of ads on some parts of its own site, including the company's 250 million-strong base of Yahoo Mail users and its Yahoo Travel site, an analyst said.