"Through this acquisition, we're gaining a team of six engineers and product managers who will join our advertising technology organization in Sunnyvale," a Yahoo spokesperson said.
Bread, which has already been shuttered, allowed users to make and insert ads that people clicking through to a shortened link's webpage would have to view, according to media.
"When we launched Bread in 2011, our goal was to help social media influencers and publishers better monetize their online content," the company said in a statement.
All Bread links will be viable until November 11, at which point the company says users should switch to another URL shortner, bit.ly.
Yahoo has been undergoing major changes since former Google executive Marissa Mayer became boss just over a year ago, notably acquiring what is now more than 20 startups including the billion-dollar buy of blog platform Tumblr.