Yahoo agreed today to buy online ad network BlueLithium for $300 million in cash, in a move to fortify the company"s position versus Google and Microsoft in the competitive market for placing ads on the Internet. BlueLithium, of San Jose, Calif., snaps up banner and other graphical ads from Web publishers and resells the real estate slots to online advertisers. ComScore Media Metrix rates BlueLithium as the fifth largest ad network in the United States, with 145 million unique visitors each month.
The BlueLithium deal comes after several organizational changes at Yahoo, taking place during a few weak financial quarters. In July, Yahoo said its second-quarter profit dropped 2.3 percent to $160.6 million. The purchase of BlueLithium should boost Yahoo"s plan to branch out beyond its own well-known brand at a time when advertisers are looking beyond the large portals.