) recently announced its acquisition of photo app maker GhostBird
Software. Financial details were not disclosed.
Toronto, Ontario-based GhostBird Software was founded in 2008
Electronic Arts Inc.
) employees, Travis Houlette and Ye Lu. GhostBird Software is the
creator of the photo-editing apps, KitCam, PhotoForge and
The KitCam app facilitates photo capturing through the
adjustment of different lenses and filters in the mobile setting.
It also allows manual selection of balance and exposure. The
other app, PhotoForge allows users to modify the pictures taken
through image resizing, cropping and metadata editing among
After the acquisition, apps from GhostBird will not support
new versions of Apple's iOS. However, users who have already
purchased the apps will able to re-download them from iCloud.
Yahoo's acquisition makes sense, as the Internet giant will
use the apps to enhance Flickr, an image and video hosting and
photo-sharing website. Yahoo acquired it in 2005 and redesigned
it in May 2013. Flickr was losing favor among users due to other
sites such as
), Twitter and YouTube where users uploaded and shared images and
The GhostBird acquisition follows that of blogging and social
networking site, Tumblr, for $1.1 billion. 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
, 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 and
, agaming infrastructure company.
We believe that these acquisitions are a part of its strategy
to boost its offerings in mobile devices, video, and personalized
digital content. 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).
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