) recently announced the acquisition of enterprise conference
call service provider, Rondee. Financial details of the deal were
Palo Alto, Calif.-based Rondee was founded in 2006. After the
acquisition, Rondee's staff will join Yahoo's Small Business
unit. The service will shut down and transfer its users to
InstantConference, another service provider by the end of July.
Existing users can still sign in and create new conference calls
until Jul 12, 2013.
After CEO Merissa Meyer took over the reins of the company, it
has been quite active on the acquisition front. Some of its
recent acquisitions include
, a task-management app maker;
, a news-condenser app maker;
, a mobile-review app maker;
, which specializes in broadcasting video chats or interviews to
, which is a kind of clipping service for the web;
, a location-based apps maker;
, a social recommendation site,
a mobile gaming start-up,
, a gaming infrastructure company and photo app maker
We believe that these acquisitions are a part of its strategy
to boost its offerings in mobile devices, video and personalized
digital content as it has lost its leadership position in display
). With search advertising revenues also declining not only
because of Google but also
), Yahoo needs to focus on other major growth markets and
emerging geographies. Currently, Yahoo has a huge task at hand,
which is to bring back its users and make them spend more time on
its properties. If successful, Yahoo may reclaim some of its lost
market share going forward. This would be crucial in bringing
back advertisers as well.
In the first quarter of fiscal 2013, Yahoo generated revenues
of $1.14 billion, which were down 15.3% sequentially and 6.6%
year over year. Traffic acquisition cost (TAC) was down 42.3%
sequentially and 49.9% year over year. Excluding these costs in
all periods, net revenue was down 12.5% on a sequential basis and
0.8% from last year, short of the consensus estimate.
Yahoo has a Zacks Rank #2 (Buy).
FACEBOOK INC-A (FB): Free Stock Analysis
GOOGLE INC-CL A (GOOG): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
YAHOO! INC (YHOO): Free Stock Analysis Report
To read this article on Zacks.com click here.