Market Overview

5 Ways To Build A Company That Yahoo Will Acquire

5 Ways To Build A Company That Yahoo Will Acquire

Yahoo (NASDAQ: YHOO) has acquired more than 100 companies since 1997 -- was yours one of them?

If not, what would it take for you to build a startup that Yahoo cannot resist?

From social companies like Vizify and recruiting firms like Distill to image recognition enterprises like LookFlow and IQ Engines, Yahoo has purchased a vast array of organizations.

Read on to find out how the next one could be yours.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Posted-In: Distill EVNTLIVE FlickeM&A News Rumors Success Stories Tech Best of Benzinga

  • Improve Yahoo's Ad Revenue

    Improve Yahoo's Ad Revenue

    In 2003, Yahoo acquired Overture Services Inc. for a whopping $1.6 billion.

    Overture was credited as a pioneer in charging for prime ad space in Internet search results.

    Yahoo takes online advertising very seriously. In addition to the big Overture acquisition, Yahoo sued Facebook in 2012 over patent infringement, including one relating to advertising.

    Yahoo will do anything it can to improve and protect its ad business. Any startup that could assist with that may prove to be a spectacular takeover target.

    Image Source: Wikimedia Commons
  • Create The Perfect Search Tools

    Create The Perfect Search Tools

    Yahoo may not offer the leading search engine, but it has been trying to build the dominant player for years.

    Thus far, Yahoo has acquired Net Controls (whose technology was incorporated into Yahoo search), HotJobs (a career search site that was ultimately sold off), Overture (search engine marketing) and SearchFox (whose technology was also integrated into Yahoo).

    This sends a clear message that Yahoo is very interested in businesses that can take search to the next level.

    Image Source: Wikimedia Commons
  • Design A Cool App

    Design A Cool App

    Yahoo loves a cool app.

    Last summer the company acquired Qwiki, an app that automatically merges photos, videos and music into mobile movies.

    Before that Yahoo brought Stamped (a share recommendation app) into the family.

    Yahoo also purchased Lexity, which made apps for small businesses, among others.

    The company loves apps so much that Mashable was inspired to create a list of the top 20 Yahoo has acquired since Marissa Mayer became CEO.

    If you can develop a cool app (or at least make Yahoo believe that you did), you just might get a call from the company.

    Image Source: Wikimedia Commons
  • Deliver A Devoted Fan Base

    Deliver A Devoted Fan Base

    When Yahoo acquired Tumblr for $1.1 billion, the company quickly gained access to the network's 300 million users.

    The company purchased (which delivered 520,000 unique users per day), Flickr (which had 87 million users in March 2013) and a number of others.

    Yahoo also purchased GeoCities, but the company may want consumers to forget about that one.

    This trend is unlikely to end anytime soon. Last year Yahoo unsuccessfully attempted to acquire Dailymotion, one of the largest video sites in the world with more than 100 million unique monthly visitors.

    Thus, if you want your business to be acquired by Yahoo, you should fight to acquire as many users as possible first.

    Startups should be doing that anyway, right?

    Image Source: Wikimedia Commons
  • Launch A Strtup With Misspelled Wrds

    Launch A Strtup With Misspelled Wrds

    Ptch. Evntlive. Tumblr. Flickr. Qwiki.

    These are just some of the startups that Yahoo has acquired, and they all have one thing in common: their names are comprised of misspelled words.

    Is this a coincidence? Maybe. But this unusual trend cannot be denied.

    If nothing else, it definitely appears that Yahoo has a thing for companies with weird or misspelled names.

    Image Source: Wikimedia Commons
  • More Stories You Can't Miss


Related Articles (YHOO)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Benzinga's Weekend M&A Chatter

The 3 Best Growth Plays In Financial Services