Rumors have been circulating that Yahoo was looking to purchase Flurry. It has now been confirmed that a deal has been in the works for months, and Yahoo will be acquiring the mobile application analytics provider for a purported more than $200 million dollars. Of the thirty or so acquisitions made by CEO Marissa Mayer since 2012, this would be the most expensive venture.
All of the acquisitions made by Yahoo over the past 2 years have been focused on mobile or cloud services. Yahoo claims it is a “mobile first” company, realigning their goals with todays mobile leaders such as Google, another search engine which was able to bridge the gap between desktop application to mobile titan. Yahoo is working to reverse the reputation that they have earned as outdated, and want to be considered as a mobile company, but right now it is not one of the first that comes to mind beyond its weather application.
The acquisition of Flurry is a strategic move to target the mobile advertising market. Flurry gathers statistics including behavioral statistics and patterns from more than 150 billion app sessions each month. The information helps application developers understand the performance, usage, and most importantly, the audience base of their application. This kind of information will not only help Yahoo to create stronger applications, but it will also give them the ability to target specific audiences with their marketing through different applications.
Yahoo’s mobile advertising is a serious weakness in comparison with Google who holds over half of the market share in mobile ad spending, and Facebook who will hold just over twenty percent. Nobody else is expected to have more than three percent, with Yahoo projected at less than one percent. Facebook acquired Onavo to compete with Google, and since Yahoo’s monthly mobile active users has grown 100%, now up to 450 million monthly users, it’s time to take the next step.
Flurry will still function as it did before,, but it’s one hundred and fifteen employees will now answer to Yahoo. This will give Yahoo an edge as they attempt to tap into the $32.7 million market that is currently out of reach for any company without an empire behind it. It remains to see if this will be the tipping point that makes Yahoo a competitive player in the mobile market, or if the big players will continue to run the show.
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