Yahoo to buy analytics startup Flurry to bolster mobile ad business

SAN FRANCISCO Tue Jul 22, 2014 2:50am IST

A Yahoo logo is pictured in front of a building in Rolle, 30 km (19 miles) east of Geneva, in this file picture taken December 12, 2012. REUTERS/Denis Balibouse/Files

A Yahoo logo is pictured in front of a building in Rolle, 30 km (19 miles) east of Geneva, in this file picture taken December 12, 2012.

Credit: Reuters/Denis Balibouse/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Yahoo Inc (YHOO.O) will buy mobile analytics startup Flurry to beef up a fast-growing mobile advertising business that still lags Google Inc's (GOOG.O) and Facebook Inc's (FB.O) in scale.

Six-year-old Flurry uses analytics to help target ads at consumers by monitoring activity on more than half a million apps on some 1.4 billion mobile devices around the world, Yahoo said in a statement on Monday.

The startup provides information to help marketers and brands more easily reach their desired audiences, Yahoo said.

Yahoo did not cite a price tag, but a source familiar with the matter said the Internet company is paying several hundred million dollars. Tech blog re/code earlier reported that rough amount.

Flurry will operate much as before after the acquisition closes, and its team will remain in their current locations, Yahoo added.

Yahoo is trying to revitalize a stagnant online advertising business as Chief Executive Marissa Mayer marks her second anniversary at the Internet company.

The former Google executive has revamped many of Yahoo's Web products but its ad sales are still weak while rivals such as Google and Facebook continue to post strong, double-digit revenue growth.

Like its rivals, it has been investing in its mobile advertising platform, as users increasingly access the Internet from smartphones and tablets. Its mobile advertising revenue more than doubled in the second quarter.

But mobile advertising typically commands lower rates than online. Revenue in Yahoo's display advertising business decreased 8 percent to $436 million in the second quarter.

The average price per ad decreased 24 percent, while the number of display ads sold increased 24 percent.

(Reporting by San Francisco newsroom; Editing by Richard Chang and Cynthia Osterman)

FILED UNDER:

Reuters Showcase

Documentary Banned

Documentary Banned

Documentary on 2012 Delhi gang rape banned in India.  Full Article 

RBI Rate Cut

RBI Rate Cut

RBI surprises with post-budget rate cut.  Full Article 

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

Insurance Reforms

Insurance Reforms

Opposition support bolsters prospects for insurance reforms.  Full Article 

Axed by Censors

Axed by Censors

India's censor blocks 'Fifty Shades of Grey' from cinemas.  Full Article 

Bollywood Focus

Bollywood Focus

Franchise Man swoops in to save Bollywood.  Full Article 

Reuters Exclusive

Reuters Exclusive

India expects better monsoon rains this year.  Full Article 

Reuters Interview

Reuters Interview

Budget lacks wow, but good enough: Jim O’Neill.  Full Article 

Slim Chances

Slim Chances

Dozens of miners missing, feared dead after blast in east Ukraine.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage