The past few years have not been that good for Yahoo, but that doesn’t stop the company from acquiring new talents. According to a recent study, Yahoo acquired more companies as well as spent more money on these acquisitions than any other company in the market. This means that Yahoo spent more than Apple as well as Google, who are generally known for their aggressive acquisitions.
The study conducted by PrivCo, concludes that Yahoo acquired 22 companies in 2013, spending just over $1.2 billion on new companies. In comparison, Google spent just under $1.2 billion and acquired 19 companies last year.
The third place was taken by AutoDesk, the American Multinational software company, also the maker of the well-known 3D software Maya, followed by the Social networking giant Facebook. Of course, Apple was not far behind and filled in the fifth spot on the number of acquisition made that year.
As mentioned above, Yahoo acquiring so many companies comes as a surprise to many, as its revenues have been pretty much flat over the past few years. Before 2012, the company hardly made the top 50 mark, but things changed since Marissa Mayer became the CEO that year.
Tumblr was Mayer’s first big acquisition and since then, the company has made 21 other purchases which made it the most active buyer of US tech companies last year.
But acquiring these many companies without a big plan may not be the best thing for the company. PrivCo CEO, Sam Hamadeh, while talking to Venturebeat said he’s concerned about these many acquisitions.
“It’s hard to see a rhyme or reason here,” said Hamadeh. “The concern is that when you’re buying a company every two weeks are you integrating these companies as part of a grand plan?
“And despite all these acquisitions, Yahoo revenues are pretty flat.”
Acquiring new companies is the best way to pool up new talent; however, Yahoo’s purchases do not represent any grand central theme. Many of the companies are related to mobile industry, so that can be the main focus of the acquisitions, but still these purchases do not say anything about the company’s future plans.
Now that the Chinese e-commerce giant, Alibaba is going public this year, Yahoo will have a lot more money to spend on new acquisitions. Yahoo is one of the biggest shareholders of the company and it could use the extra money generated to buy some great new startups this year.
For comments and suggestions, leave a message in the comments section below. Like and Follow our Facebook page for more stories and to stay up-to-date with the latest happenings.