The financial terms of the deal were not disclosed by Yahoo but it is said that RayV will become part of the company's research and development team in Tel Aviv.
"The (RayV) team lives and breathes video, and have become industry pioneers," Yahoo said in a Tumblr post.
"This deal demonstrates our dedication to accelerating our video strategy and boosting our underlying technology infrastructure in the space," it added.
The acquisition is part of Yahoo?s efforts to improve its offerings for streaming video live or on demand.
Yahoo made the announcement on the same day when it unveiled a lineup of free streaming concerts by music stars such as Usher, Michael Franti, and The Dave Matthews Band.
A Live Nation Channel on Yahoo Screen said that the company would serve up a new live concert daily beginning on July 15.
"In today's on-demand entertainment environment, live experiences are the only ones that we all share together, at the same time," Yahoochief marketing officer Kathy Savitt said in a statement.
"Together with Live Nation, we are excited to bring millions of fans together to share these moments through the new Yahoo Live experience," Savitt added.
Yahoo.com/live promised performances by John Legend, Justin Timberlake, OneRepublic, Everclear, Airborne Toxic Event, and other music stars in the first month.
"This channel will create a powerful new way for artists to continue to grow their global fan base," Live Nation chief executive Michael Rapino said.
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