What Happened To 5 Biggest Yahoo Acquisitions   Leave a comment

With Yahoo’s board members approving Marissa Meyer’s plan to buy the blogging platform Tumblr, the internet giant has stepped into one of the biggest acquisitions in its life time. The deal is rumored to cost the ‘resurrecting’ company $1.1 billion, which is the biggest ever gamble made by the young CEO.

The acquisition will surely send tremors to Facebook and Google headquarters, as a recent survey had revealed Tumbler’s popularity- 75.8 million posts per day! However, things are not clear on what Merissa plans to do with the platform. Let’s hope Tumbler’s future is safe in the hands of Yahoo, or will it invite the fate of some of Yahoo’s early acquisitions?

Here is a time line on what happened to Yahoo’s 5 biggest acquisitions, compiled by NDTV Gadgets.

#5 Broadcast.com

Cost: $5.7 billion
Acquisition date: 1 April, 1999
What Happened: Broadcast.com was an internet radio company. Yahoo approximately paid over $10,000 per user ($5.7 billion valuation), to acquire the company, which was soon renamed to Yahoo! Broadcast Solutions.

Fate: Yahoo split the company into separate services, Yahoo! Launchcast for music and Yahoo! Platinum for video entertainment. Yahoo! Platinum has since been dead, however Launchcast, the internet radio still lives on.

#4 GeoCities

Cost: $3.57 billion

Acquisition date: 28 May, 1999

What Happened: In 2009, GeoCities was the third most visited website in the world. It allowed people to host a website for free, under the name of neighborhoods like “Hollywood” and “Silicon Valley.” The extremely popular service was brought by Yahoo in the peak of dot-com bubble.

Fate: Yahoo’s acquisition was extremely unpopular among users. Company changed the neighborhoods and street address URLs for members to “vanity” URLs through members’ sign-up names to Yahoo. The new ‘terms and conditions’ of the search company provoked large number of users to leave the service. Finally On April 23, 2009, Yahoo announced that it will be closing the U.S. branch of GeoCities. However the service continued its operations in Japan.

#3 Overture

Cost: $1.63 billion
Acquisition date: 14 June, 2003

Overture was a company which provided pay for placement search services. Businesses, including some of Yahoo were using Overture’s technology to have their Web addresses displayed at the top of search listings. It was a market kept under close watch by Yahoo’s rival Google.

Finally, Yahoo has acquired the company and renamed it into Yahoo Search Marketing.

Fate: The service is currently a part of Yahoo Marketing Solutions. However, the Overture brand is still used by local businesses in Japan and Korea.

#2 Right Media

Cost: $850 million

Acquisition date: 29 April, 2007

What Happened: Right Media is an online advertising company that operates a marketplace that enables advertisers, publishers, and ad networks to trade digital media. In a move to boost the reach of company’s advertising to social network sites, Yahoo bought Right Media.

 Fate: Right Media has been integrated with Yahoo’s offerings to small businesses. It is now a part of Yahoo Marketing Solutions.

 #1 Kelkoo

Cost: $579 million

Acquisition date: 26 March, 2004

What Happened: Kelkoo is a price comparison service in Europe that allowed customers to find information on products they want to purchase, including price and seller information. With its acquisition, Yahoo tried to specifically target the individual customers in Europe, by offering advertising options to businesses.

Fate: The company has lost much of the traction after it was acquired by Yahoo. However, it continued offer the services till finally Yahoo decided to sell it off on 21 November 2008 to a Europe based private equity firm, for an amount which is lower than 1/4th of buying price.

Kelkoo still operates, offering its service in 12 countries.


Posted May 21, 2013 by avinash2060 in $tock World

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