Yahoo’s acquisition spree continues: The company has reached a definitive agreement to acquire the mobile app analytics and advertising firm Flurry. While the deal size was not disclosed, TechCrunch cites a source to peg the price at around $200 million – $300 million.
Yahoo mentions that Flurry will continue to offer its existing products to app developers and the Flurry team will remain in their present locations. It also claims that the joined offerings of Yahoo & Flurry will provide more effective mobile advertising solutions for brands along with insights across desktop and mobile. Flurry mentions that it “will continue to serve the application developer community in the way we always have, only better”. It also notes this acquisition will provide them more resources to speed up the delivery of its products.
It seems like things weren’t all good at Flurry. The company had recently took on $10 million debt financing and was looking for additional investment, as indicated by a Valleywag report. This was despite raising $12.5 million in December last year, indicating that Flurry was burning money quite fast. TechCrunch also cites a source to suggest that the company was on the market, looking for a price of around $700 million – $800 million, which is significantly higher than the rumored acquisition price.
Flurry started its Indian operations in 2012 and it was led by Aakrit Vaish, until he quit the company in June last year to start his own venture Haptik. In an interview to Business Today in January this year, Flurry CEO Simon Khalaf had claimed that they work with around 1,400 companies with more than 10,000 apps that are based in India.
Why Flurry acquisition is important for Yahoo?
For Yahoo, this could turn out to a critical acquisition to up its mobile efforts and improve its mobile advertising business. Note that Flurry was one of the popular mobile app analytics firm and would therefore have a lot of data on apps across every category.
The company claims that 170,000 developers across 150 countries use Flurry Analytics and it is in seven apps per device on an average. It also claims to see app activity from 1.4 million devices on a monthly basis and 5.5 billion app sessions per day. Around 8,000 publishers also apparently monetize with Flurry.
Yahoo claims that its mobile display and search revenue each grew by more than 100% year-on-year, however the company doesn’t seem to consider it important enough to break it up in its quarterly earnings yet.
That being said, the company is investing significantly to improve its mobile business and has acqui-hired around 36 mobile products startups since Mayer took over as the CEO in 2012. (A list of startups here)