Yahoo Acquires SkyPhrase - Analyst Blog

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Yahoo! Inc ( YHOO ) recently announced that it has entered into a definitive agreement to acquire SkyPhrase, a startup language processing company. The Skyphrase team of four will join Yahoo's Lab business unit in New York City as per the deal, the financial details of which have not been made public.

SkyPhrase's technology works both with Gmail and Twitter ( TWTR ), thus allowing users to receive tailored results when searching for phrases with multiple variables. SkyPhrase recently unveiled two apps. The first one enables users to look up fantasy football stats while the other one integrates with Google Analytics.

Yahoo! expects this acquisition to enhance its ability to make sense of user queries and commands across any number of Yahoo products. Further, Yahoo! believes that some of its fantasy sports apps like Fantasy Sports Football would definitely benefit from SkyPhrase's technology.

With this acquisition, Yahoo! has taken its year-to-date acquisition tally to 23. Yahoo! acquired microblogging platform Tumblr in June, followed by the acquisition of mobile advertising specialist AdMovate a month later.

Natural language processing is growing into an important part of search with companies like Facebook Inc. ( FB ) and Google Inc. ( GOOG ) now comprehending complex, colloquial input. Facebook's Graph Search and Google's Hummingbird bear testament to the aforesaid fact.

Yahoo's search business continues to show signs of improvement, even in the face of tough competition from Facebook, Google and Microsoft ( MSFT ). Currently, Yahoo has a huge task at hand, which is to retain and add to its user base and make them spend more time on its properties. This would play an important role in bringing back advertisers as well.

However, inability to protect user information could damage its reputation and affect credibility, thus slowing down financial growth and puling down stock prices in the process.

Currently, Yahoo! has a Zacks Rank #3 (Hold).



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: FB , GOOG , MSFT , TWTR , YHOO

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