Yahoo CEO Marissa Mayer has announced Tuesday the acquisition of BrightRoll, a leading programmatic video advertising platform, confirming earlier reports about the deal.

The video ad network was bought for a cool $640 million in cash, and Yahoo claims it is profitable and will see over $100 million in revenue this year.

Mayer says video is a key part of their new strategy and growth businesses, which also include mobile, social and native. She believes video is the key puzzle piece that will “reinvent” and “modernize” their lackluster display ads. The former Google employee explained in a blog post:

“We say that video is display 2.0 because we believe it can reinvent and replace the branded banner advertisement. Video, along with mobile, social and native, represents a new format of online advertising that has the potential to help us transform and modernize Yahoo’s display business and return it to growth.”

“We have good investments that are just beginning to pay dividends in these growth areas. We need to hit equally meaningful milestones for video,” Mayer added.

Meet BrightRoll

Yahoo acquires BrightRoll with the firm belief that the purchase will make the company’s video ad platform “the largest in the US.”

According to its website, BrightRoll builds technology for automating video advertising globally. It also enables cross-platform advertising, allowing advertisers to reach audiences across the web, mobile and connected TV. And, according to Yahoo, here’s why the acquisition is a sensible investment:

  • BrightRoll powers digital video advertising for the world’s largest brands and agencies, including 87 of the AdAge Top 100 US advertisers, all of the top 15 advertising agencies, and all 10 of the leading demand-side platforms.
  • BrightRoll served more video ads and reached more customers in the US in 2014 than any other platform, according to comScore.
  • Tens of thousands of sites and apps send approximately two billion requests per day to BrightRoll to monetize the inventory they worked hard to create.

As Forbes pointed out, Yahoo has been a flailing company for several years now due to a lack of market advantage and strategy. But Mayer is confident that the deal is a crucial step in their effort to bring Yahoo back to its former glory, and that it will “create shareholder value.”

Will BrightRoll be the catalyst to Yahoo’s progress? I guess we’ll have to wait for their next earnings release to see that.