Yahoo has today confirmed it will acquire Broadcast.com, a Dallas based aggregator and broadcast of streaming audio over the Web for $5.7 billion in stock.
The acquisition will give Yahoo yet another route to attract visitors to its portal site as it competes with Excite and Lycos for Web 'eyeballs'. It also comes just two months after Yahoo announced it would buy Web community site Geocities for $3.5 million.
Yahoo has posted solid earnings for the last few quarters, but Broadcast.com, like many high profile Internet companies is losing money. In 1998 the company lost $14.9 million on revenue of $22.4 million.
"The acquisition of Broadcast.com is a natural extension of our strategy to deliver the ultimate experience to Web users and powerful advertising and distribution platform for both companies' content, advertising and business service providers," said Tim Koogle, chairman and chief executive of Yahoo, in a statement.
The acquisition is expected to be completed in the third quarter of 1999 and will be accounted for as a pooling of interests. It is subject to standard approval from regulatory bodies and from Broadcast.com's shareholders.
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