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Yahoo Buys Online Ad Startup 5to1 For $28 Million

Yahoo (NSDQ: YHOO) is paying $28 million for 5to1, an online ad marketplace that lets top brand advertisers purchase unsold premium inventory on the sites of 20 major publishers. In its announcement, Yahoo says the purchase will allow it to increase the premium inventory it can offer advertisers.

5to1 has ties to Ross Levinsohn, the former News Corp (NSDQ: NWS). executive who joined Yahoo as Yahoo Americas EVP in October. The company was started by several Fox Interactive Media executives and had also raised funding from Fuse Capital, the investment firm Levinsohn founded when he left News Corp.

As recently as last November, Levinsohn was listed as the company’s chairman. (Yahoo does not note the link to Levinsohn in its announcement but a spokeswoman tells us Levinsohn left his position at 5to1 when he joined Yahoo and divested his shares then too).

Yahoo’s announcement is short on details on how it will integrate 5to1’s marketplace, but the company says 5to1’s staff will join its ad marketplaces group. The team includes CEO James Heckman, who sold another company he founded — Rivals.com — to Yahoo for $100 million four years ago.

2 Responses to “Yahoo Buys Online Ad Startup 5to1 For $28 Million”

  1. Phil Davis

     where is the fiscal responsibilty to Yahoo shareholders? Heckman/Levinsohn too close for comfort, Levinsohn was Chairman of 5to1 reverse merger pennystock sham, then a month later he joins Yahoo, did he forgo his stock in 5to1? Yahoo has billions of ad impressions UNSOLD do they really need to acquire a loser like 5to1, sounds like a hand-out to Heckman, nice to have friends in high places. Levinsohn overpaid for MySpace, Rupert tossed him, Bartz clearly has NO CLUE she’ll show him the door after this one-

  2. re: “James Heckman, who sold another company he founded—Rivals.com—to Yahoo for $100 million four years ago.”

    I believe he was long-gone from Rivals.com when that took place.