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Yahoo Acquires Overture Services

October 08, 2003|From Bloomberg News

Yahoo Inc., owner of the most-used Internet site, said Tuesday that it had completed its purchase of Overture Services Inc. for $1.83 billion in stock and cash, gaining Overture's technology for inserting advertising into Web-search results.

Each share of Pasadena-based Overture was converted into a right to receive 0.6108 share of Yahoo and $4.75 in cash, the companies said.

Overture is the leading commercial search provider with more than 100,000 advertisers globally.

Yahoo had a partnership with Overture to use its so-called sponsored search results, in which businesses pay for the right to have their Web addresses displayed at the top of search listings.

Yahoo said it now would use Overture's technology to place more ads in other parts of Yahoo's Web site, including the online shopping, travel and yellow-page phone directories.

Overture's operations will remain in Pasadena. Ted Meisel will continue to lead Overture's operations and will report to Dan Rosensweig, Yahoo's chief operating officer.

Yahoo shares fell 85 cents to $38.93 in Nasdaq trading. They have risen more than fourfold over the last year.

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