Will acquisitions help Yahoo! Inc. (NASDAQ:YHOO) Become Internet Giant?

Posted On 06 Aug 2013

Tag: NASDAQ:YHOO, Yahoo! Inc (NASDAQ:YHOO)

Denver, CO, 08/06/2013 (Avauncer.com) – A digital media company Yahoo! Inc. (NASDAQ:YHOO) acquired California based social media browser Rockmelt, after maintaining confidentiality of the deal of the financial issues. But according to analysts it could be from $50 million to $80 million.

Yahoo’s plan behind this acquisition is to delight more consumers and attract more users to its website through better services with new features, as Rockmelt is a web browser which incorporates unique features of social media segment like Facebook chat, Twitter notifications, YouTube and other similar contents which can help Yahoo to enter in social marketing area where its competitors have proven themselves already. It is considered as a part of company’s strategy to enlarge and fortify company’s expertise in mobile segment. According to news, by Aug 2013 Yahoo will integrate the new technology into its own media platform and will shut down the existing.

Where company is significantly increasing its R&D operations; on the other hand it is under financial pressure, facing problem of its revenue growth. The reason behind this slowdown in its revenue is that more users and advertisers prefer to use and invest in its rivals, Google and Facebook. In fact, the revenue for the second quarter reduced by 12% compared to last year.

However, the company’s recent acquisition of Rockmelt, a startup that allows users to connect with social media group on their smartphones, might bring the company’s presence into mobile users. Through this it might also increase its ad revenue, once it charms users, it will start drawing advertising dollars.

Under the leadership of CEO Marissa Meyer Yahoo is committed to keep its image of being leading internet giant. It is considered as Yahoo’s 20th acquisition after CEO Meyer took over the wheels of the company. These acquisitions will help Yahoo build its technological portfolio stronger with the availability of software talent and products at competitive rates

About the Author

Alexander Cooke has over 8 years experience in Automobile, marketing, PR, advertising, sales, promotions and special events planning. His writing for print includes work for a Gannett paper and a personal experience piece for Newsweek. Since 2008 he has concentrated on automotive articles for the on-line market and produced numerous pieces for the High Gear Media site Allcaradvice.com. That work was moved to the media company’s flagship site Thecarconnection.com where it can be viewed.