The deal, subject to shareholder approval, is expected to close in the third quarter. Rumored for several weeks, the acquisition is Yahoo!'s largest to date, and gives the portal a way to offer its users and advertisers rich-media content and capabilities.
Yahoo! said on completing the merger it would package Broadcast.com's streaming audio and video capabilities into Fusion Marketing Online. The new marketing program will include multimedia advertising and Web hosting.
Securing a rich-media foothold is becoming increasingly important. High-speed Internet service @Home purchased Yahoo! rival Excite earlier this year.
"There's a lot of synergy" between the two companies, said David Alschuler, VP of e-business and enterprise applications at Aberdeen Group. The deal would let