Sunnyvale-based Yahoo Inc. has agreed to buy online advertising network Interclick Inc. for $270 million in cash.
The deal announced Tuesday will help Yahoo target advertisements to its online audience.
The Wall Street Journal points out Interclick will solve a problem that has cost Yahoo millions of dollars each year. WSJ said digital-ad sellers have been buying up ad space on Yahoo websites and then selling it to advertisers for a much higher price. Interlink will give Yahoo a way to know what ad space is worth in the first place
Yahoo has agreed to pay $9 per share, a 22 percent premium to Interclick's closing stock price on Monday.
Interclick's board has approved the deal. The companies expect the deal to close by early next year.
Yahoo shares fell 78 cents, or 5 percent, to $14.86 in midday trading. New York-based Interclick's
shares rose $1.56, or 21.1 percent, to $8.96. The stock earlier hit
a 52-week high of $8.99