Yahoo bolsters advertising operations with 5to1 buy

Yahoo has made another move to boost its advertising operations with the acquisition of ad placement firm 5to1.

Terms of the deal, which is expected to close by the second quarter, were not officially disclosed, but Associated Press reported that Yahoo will pay $28m.

Based in California, 5to1 brokers ads by matching businesses with publishers looking to fill surplus advertising space. The company will become part of Yahoo's Advertising Marketplace operation when the deal closes.

"5to1's innovative platform and premium private marketplace will further enable Yahoo to extend our advertising leadership," said Wayne Powers, Yahoo's senior vice president for North American advertising sales.

"5to1 provides additional access to publishers, and unlocks the value of unsold inventory for premium brand advertisers."

The acquisition is the latest move in an ongoing rebuilding effort by Yahoo. Once a top player in the search market, the company has for years looked to shed its unprofitable operations and refocus on the advertising space.

Yahoo's advertising branch was the primary target when Microsoft made a $44bn offer to acquire Yahoo in 2008.

The deal escalated into a public feud between the two firms when Yahoo later declined the offer and entered into a war of words with Microsoft.

Fallout from the failed merger hit Yahoo's stock price and eventually led to the resignation of chief executive and co-founder Jerry Yang.

New chief executive Carol Bartz later attempted to salvage a deal by agreeing to a smaller search advertising partnership with Microsoft.