With approx. 23 percent stake in Alibaba, Yahoo has recently earned billions from the IPO. As mentioned in today’s ET report, after raising USD 21.8 billion, the underwriters sold around 48 million shares more, including the additional 18.3 million shares by Yahoo. Thereby, getting Yahoo an extra USD 1.2 billion for the same.
Clearly, thats a pretty large amount. So, where does Yahoo plans to invest this sum?
Going by the trend that Yahoo’s CEO Marissa Mayer has set since she got on board, it could add up to company’s aggressive acquisition strategy. But, at the same time, Yahoo is also struggling with its advertising revenues since the last two years, so improving products and reviving sales strategy to deal with competitors such as Google, can also be a focus point.
As per a CB Insights report, Yahoo ended the year 2013 with 29 acquisitions, adding another 14 this year (15, at the time of writing this article). The recent ones include Bookpad, Luminate, ClarityRay, Zofari, Flurry and more.
Wherein initially, the focus was on acquiring social (Snip.it, Astrid, Stamped, GoPollGo, etc.), photo (LookFlow, IQEngines) and mobile (Ptch, etc.) startups, it has now shifted to ad-tech (Flurry, Luminate, etc..)
As mentioned in the report, Khosla Ventures and Google Ventures emerged as the most profitable VC’s as they had the most portfolio companies acquired by Yahoo since Mayer took over. Here is a list of startups acquired by Yahoo since the beginning of this year along with the VC’s which back those companies:
So, can we expect acquisition of more companies in the advertising category or Mobile-Social will still be the favorite? Also, with more than USD 5 billion in hand, can we expect Marissa to revise the current targeted revenue of USD 4.3 billion this fiscal?
Feature image via Wall Street Journal