Report: Yahoo mulling $50M deal for video app maker Qwiki
Yahoo is in talks to acquire mobile video application developer Qwiki for as much as $50 million, All Things D reports.
Sources close to Yahoo said the company is in advanced negotiations with Qwiki, whose free Apple (NASDAQ:AAPL) iOS app automatically groups the best photos and videos on the user's phone, combining them with captions, music and other effects to create mini-movies optimized for sharing via email, SMS or social media. Qwiki has raised more than $10 million from investors including Lerer Ventures, Lightbank and Facebook (NASDAQ:FB) co-founder Eduardo Saverin.
AllThingsD reports Yahoo is also exploring a deal to purchase Xobni, which offers the Smartr Contacts address book apps for iOS and Google's (NASDAQ:GOOG) Android as well as contact management tools supporting platforms like Yahoo Mail, Google's Gmail and Apple's iCloud. Insiders said Yahoo is offering between $30 million and $40 million, less than the more than $40 million Xobni has raised from investors like First Round Capital, Baseline Ventures and Khosla Ventures--sources added that Yahoo has offered a better deal than other Xobni suitors and represents the most organic fit given its messaging efforts.
Yahoo, Qwiki and Xobni did not respond to requests for comment.
Yahoo has been on a spending spree since former Google exec Marissa Mayer took over as CEO in mid-2012. In addition to snapping up social networking platform Tumblr for $1.1 billion in cash, Yahoo has recently acquired mobile-focused startups including Summly, Jybe, Alike, Stamped and Astrid. Last week, the company also completed a deal for GhostBird Software, the startup behind iOS photo applications KitCam and PhotoForge, a move to expand its Flickr photo-sharing platform, which Yahoo acquired in 2005 for a reported $35 million.
Mobile is one of Mayer's four key focus areas, alongside search, display and video. Researcher Onavo Insights reports apps like Yahoo, Yahoo Mail, Yahoo Weather and Flickr all posted significant user gains in May 2013, indicating Mayer's aggressive mobile push is paying dividends.
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