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(TechWeb)

In a move to compete with Google’s ever-expanding advertising empire, Yahoo announced a $680 million deal of its own on Monday. The acquisition of Right Media is Yahoo’s partial answer to Google’s string of recent wins in online advertising.

By acquiring the 80 percent of Right Media it didn’t already own, Yahoo now has full control of the Right Media Exchange, an interactive advertising exchange that models itself after eBay.

Yahoo Chairman and CEO Terry Semel said he believes the Right Media buyout will advance the company’s goal of creating the industry’s “most open, accessible and vibrant advertising marketplace” to help “democratize the buying and selling of digitally enabled advertising.”

“This acquisition is an important step in our long-term vision to build the industry’s leading advertising and publisher ecosystem,” Semel said in a statement. “We believe that Yahoo’s open approach is a clear differentiator from others in the industry and provides significant benefits to advertisers, publishers, and Yahoo itself.”

The eBay Model

The Right Media Exchange is an open exchange designed to level the playing field by giving advertisers, publishers, and advertising networks open access to each other and a supply of ads and inventory.

Yahoo is betting it can become the leader in this emerging niche in which buyers have an equal opportunity to engage with the largest, most valuable audiences and where sellers can gain access to a larger pool of advertisers. The concept is designed to foster competition for the inventory and maximize revenue, although some industry watchers note that only remnant inventory is available on these types of networks.

Yahoo will become both a buyer and a seller in the Right Media Exchange. According to the company, the acquisition will allow Yahoo to increase liquidity and provide an opportunity to derive more value from nonpremium inventory. Meanwhile, competing networks such as AdECN.

- Yahoo Answers Google, Buying Right Media for $680 Mil