Yahoo! Inc. will likely continue its acquisition spree with the newest addition being Tomfoolery. Reportedly, the two companies are at an advanced stage of discussion and are expected to close the deal for about $16 million.
Tomfoolery is an enterprise app developer and was co-founded in 2012 by ex-Yahoo employee Kakul Srivastava and ex-AOLer Sol Lipman. The objective of starting this company was to make apps which would help co-workers communicate and collaborate in the workplace through a socializing platform like Facebook, Inc.
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Its first product, Anchor, allows employees to discuss work projects using simple apps on their mobile phones.
Today, Mobile apps have become the official route to drive content and services to customers. According to Gartner, mobile apps are growing into one of the most important revenue drivers, with prospects of generating over $77 billion by 2017.
While Yahoo also been updating its mobile apps, its efforts have not really taken off yet (it ended 2013 without a single app on Apple’s list of Top 100 Apps). This acquisition improves Yahoo’s chances of making more effective apps and also brings back some key executives.
Many of Yahoo’s recent acquisitions have been made with the intention of beefing up its mobile business. Earlier this month, the Internet portal acquired a mobile-marketing company called Sparq.
Some other acquisitions which made news this month include Equifax Inc.
’s (EFX - Free Report
) acquisition of TDX Group, a debt-Management firm and Google Inc.
’s acquisition of DeepMind, an artificial intelligence company.
Currently, Yahoo! has a Zacks Rank #4 (Sell).