SAN FRANCISCO, US - Yahoo announced Tuesday it has bought Internet video syndication specialty firm Maven Networks for approximately 160 million dollars.

Word of the acquisition comes a day after Yahoo rejected a 44.6-billion-dollar takeover bid by US software colossus Microsoft on the grounds the offer 'undervalues' the veteran online search company.

Yahoo and Maven were apparently negotiating the deal before Microsoft made its offer for Yahoo on February 1.

Maven, based in the US state of Massachusetts, specializes in online video publishing, syndication and, most importantly, advertising. The start-up bills itself as being 'synonymous with Internet television.'

"When I co-founded Maven Networks it was with a singular vision that video would be critical to the future of the Internet," Hilmi Ozguc wrote in a posting on his company's website on Tuesday.

"The combination of Yahoo and Maven Networks paves the way for the creation of even more advanced video content monetization and distribution capabilities for media companies and advertisers worldwide."

Yahoo says it bought Maven to improve content and advertising in online video services provided by the Sunnyvale, California, firm.

"Video is projected to be the fastest growing segment of the online ad market, and Maven will significantly help advance Yahoo's strategy, expanding the video opportunity for publishers and increasing the efficiency and effectiveness for advertisers," said Yahoo executive vice president of global partner solutions Hilary Schneider. -AFP