Yahoo has announced that it has reached a definitive agreement to acquire Polyvore, a fashion discovery site that was founded in 2007 by three former Yahoo engineers. Polyvore provides brands and retailers a way to connect with influential consumers and drive sales through native advertising solutions. The deal amount is still undisclosed, but as per multiple resources familiar with the matter, it is said to be around $200 million.
The acquisition will enhance Yahoo’s consumer and advertiser offerings — Polyvore will strengthen Yahoo’s digital magazines and verticals through the incorporation of community and commerce. And, together Yahoo and Polyvore will power native shopping ads that drive traffic and sales to retailers.
The Polyvore team will join respective Yahoo offices in Sunnyvale, San Francisco and New York and Polyvore Co-Founder and CEO Jess Lee will report directly to Simon Khalaf, Yahoo’s SVP of Publisher Products.
In 2014, Yahoo spent nearly $900 million on acquisitions, including scooping up companies such as analytics startup Flurry and video-ad startup BrightRoll.
Polyvore had raised about $22 million prior to the Yahoo acquisition from investors including Goldman Sachs, DAG Ventures and Benchmark Capital.Category Business