Earlier this week, Digiday reported that parties were trying to engineer a divestment of Yahoo’s demand-side platform, but who would buy such an asset, especially in this market?
Now that the hard yards of reporting have been done, it’s time to reflect on the subsequent output of ad tech’s chattering classes to assess the likely outcomes of such a process.
It’s worth mentioning how the potential sale of Yahoo’s DSP underscores a significant moment in the ongoing evolution of the ad tech industry. The contemporary era is one characterized by consolidation, strategic recalibration, and the quiet reshaping of digital advertising’s competitive landscape.
While no formal sales process has been initiated, interest from buyers and banks signals that Yahoo’s DSP may soon be on the market. This invites speculation on who might step forward and what it says about the broader M&A landscape in ad tech.
Yahoo, once the crown jewel of the early internet era, is a markedly different entity today under the ownership of Apollo Global Management.
Since acquiring Yahoo from Verizon in 2021, Apollo has pared back its ad tech footprint, shuttering the supply-side platform and focusing instead on partnerships like its long-term deal with Taboola.
Yet, the DSP has remained a core asset — an independent, feature-rich platform that, according to industry voices like TAU Marketing Solutions’ Robert Webster, is well-regarded and primed for growth in an AI-driven future.
How much?
Quite what price Apollo could command for Yahoo’s DSP is difficult to assess without looking directly at its books, albeit separate sources seemed to think the individual asset wouldn’t be profitable. One noted how any such pricing would be based on revenue and theorized that any such asset would fetch approximately $500 million in a regular market.
So, who might buy Yahoo’s DSP? Based on recent reporting and market logic, the most probable suitors fall into two categories: rival DSPs looking to consolidate market share or strategic acquirers, such as retail media networks, that seek to expand their ad tech capabilities.
The latter has become increasingly relevant as commerce-driven platforms attempt to take more control over media buying, especially in a landscape where advertisers are keen to diversify away from Google, Amazon, and Meta.
Spin-out considerations
Despite a general hesitance around mergers between DSP competitors, the time may be ripe for such moves. The DSP space, once perceived as largely locked up by a few dominant players like Google’s DV360 and The Trade Desk (increasingly Amazon), now appears more fluid.
However, as separate sources noted, a DSP spin-out would need to retain the rights to the Yahoo data, and as soon as they are separate entities, there would also be privacy issues around getting and maintaining user consent.
Buyers are exploring alternatives to Big Tech, driven by performance needs, data privacy trends, and a desire for better control. Yahoo’s DSP, while not in the top tier, is gaining attention as a nimble, independent option with a solid foundation — making it attractive to challengers or data-rich platforms like Kroger or Walmart aiming to build end-to-end stacks.
Private equity, on the other hand, appears less likely to make a move. Sources indicate that unless Yahoo’s DSP comes bundled with its broader data and content assets — which Apollo seems reluctant to offer — there may not be enough standalone profitability to entice PE buyers. In a sense, Apollo has likely already optimized whatever value it can extract, making a cash-rich exit from the DSP a logical next step if a strategic buyer emerges.
Zooming out, the broader M&A outlook in ad tech remains cautiously optimistic. While current macroeconomic uncertainty — such as potential tariff shifts under the U.S. administration — may dampen short-term deal flow, underlying trends continue to drive activity. Data integration, AI innovation, and the rise of CTV are all pushing strategic players to build or buy more robust tech stacks. Notably, recent deals by T-Mobile and Braze highlight how companies outside traditional ad tech circles are now entering the fray.
Uncertainty dulls appetites
However, as LUMA Partners CEO Terence Kawaja, the arch-dealmaker of Silicon Alley, told Digiday, the current market uncertainty is likely to delay any transactions. “Deals get done in bear markets and bull markets,” he said.
“When you have a new and substantial change in the market, as we’re currently experiencing, you have to figure out all the implications… one thing we can say for certain is that that type of uncertainty is not a friend of dealmaking.”
In short, the fate of Yahoo’s DSP is emblematic of a sector in flux — where legacy platforms must decide whether to double down or divest and where buyers are increasingly strategic, tech-savvy, and data-driven. Whether Yahoo finds a buyer soon or continues to test the waters, its journey reflects the broader recalibration of the digital advertising ecosystem in 2025 and beyond.
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