Yahoo Japan has announced the acquisition of location-based mobile advertising firm Cirius Technologies.
The move is an attempt to strengthen is position in the burgeoning mobile advertising market,
Cirius is the company behind the AdLocal mobile advertising platform, which allows advertisers to deploy adverts based on the physical location of users via GPS, Cell-IDs and map coordinates.
The acquisition marks Yahoo's move in the location based services markets and its efforts to concentrate more on web based services.
The financial details were not disclosed by Yahoo, but it is expected that Cirius will have to close down its branch office in Sunnyvale, California and move its 30 staff to the Yahoo Japan head quarters.
Yahoo will use AdLocal's dominant position in the $1 billion mobile advertising market to leverage its operations in Japan.
Use of location-based tools to serve mobile adverts is yet to pick-up in the US, but is already becoming increasingly popular as a market in Japan with an estimated value of over $1 billion.