It started last fall of October 2012 when Yahoo acquired its first company under the leadership of new CEO, Marissa Mayer. Stamped, a company into Mobile apps was acquired in an undisclosed amount but which certainly was in double digit millions as startup had a funding of $3 million. Stamped team joined yahoo since then for building a major mobile development centre.
It’s been 8 months and 10 acquisitions since then and still Yahoo’s desperate efforts for regaining its position as a tech and media giant are clearly visible. As reported by All Things D, Yahoo is eyeing for Tumblr this time and the deal can be valued at $1billion.
Tumblr which announced their new monetization strategy recently has raised $125 million at a valuation of $800 million. It is expected to have 117 million visitors as per comScore and 107.8 million blogs and 50.6 billion posts as per the claims on its website. It can be a tasty pie for Yahoo as it syncs with its advertising business and also with its focus to enter social space by offering Consumer centric engagement solutions. Of course Tumblr Acquisition will bring Yahoo a wide young audience and future hope if Yahoo could integrate its advertisement expertise to tumblr’s large user base.
Yahoo’s spree to hunt startups has landed 10 mobile and specifically location services based companies to its kitty.
Interesting part to ponder upon is all of the acquired companies have been shut down with their services rolled into Yahoo’s offerings and the core members of all these web based consumer facing companies have joined yahoo team making it a Acqui-hire rather than acquisition. As most of the M&A were done for talent rather than technology but at least one, Summly seems to have added tech value as it can be seen in Yahoo’s recently launched flagship app.
Yahoo which has spent more than $6 billion in M&A between 2000-2012 is now going for smaller amount of acquisitions as 5 startups out of the total 10 were bought at an average price deal of $3.3 million. Stamped, Ontheair , Snip.it , Alike, Jybe were picked up in $16 million as per yahoo’s recent regulatory filings which also shows that $10 million acquisition price for Snip.it was just a rumour.
It will be interesting to watch how Yahoo will capitalize on these acquired tech start-ups more than just using their team. Also how many more start ups will it acquire for fulfilling its aim to become a part of everyone’s daily life and routines.Category Internet Investments Mobile Technology