Yahoo Explores DSP Sale as Ad Tech Consolidation Accelerates Amid Competitive Pressures

Yahoo has initiated preliminary discussions with investment banks and potential buyers regarding the possible sale of its demand-side platform (DSP), according to sources familiar with the developments. While these talks have not yet led to a formal sales process, they signify growing interest in consolidating ad tech assets. Since Apollo Global Management acquired Yahoo in 2021, the company has reconsidered the future of its ad tech, with several suitors expressing interest in the DSP in recent weeks.

Yahoo’s Ad Tech Strategy Focuses on DSP Monetization and Strategic Partnerships Since 2021

Yahoo’s ad tech assets have been under review since Apollo Global Management took over in 2021. The private equity firm inherited a comprehensive suite of advertising tools but has since scaled back, including shutting down its supply-side platform in 2023. Instead, Yahoo formed a long-term partnership with Taboola to handle native advertising on its platforms.

Despite these changes, Yahoo has focused on monetizing its remaining ad tech assets, including its DSP, through strategic partnerships with companies like Kroger and pushing for more transparency in the industry.

Interest in Yahoo’s DSP has intensified since early 2025, with multiple investment bankers reportedly involved in engineering a potential deal. Preliminary discussions with other competitive DSPs took place in recent weeks but have since ceased. The DSP market is becoming increasingly competitive, with key players like Google, Amazon, and The Trade Desk dominating. Yahoo’s DSP, though smaller, is growing in stature, particularly among independent DSPs, and has garnered praise for its features and AI potential.

Ad Tech M&A Outlook: Consolidation Driven by Strategic Acquisitions Amid Market Uncertainty

The broader outlook for mergers and acquisitions (M&A) in the ad tech space points toward consolidation, with competitors seeking to gain market share or strategic players like retail media networks looking to enhance their offerings. Yahoo’s DSP is seen as a strong candidate for such consolidation, as many buyers are eager to diversify their DSP portfolio and reduce reliance on Big Tech companies.

However, some experts suggest that another private equity firm would not be likely to acquire Yahoo’s DSP without access to its data assets, which are crucial for profitability.

The ad tech M&A market is expected to stay active, though it faces some uncertainty. While mergers between competitors are uncommon, strategic acquisitions are a key driver of the ongoing activity.

However, market instability, especially concerning U.S. tariff policies and regulatory changes, could impact the flow of deals in the near future. As AI and other technological advancements continue to transform the ad tech sector, consolidation may persist, but the speed and volume of transactions will likely be influenced by broader macroeconomic factors.