Yahoo! Inc. (YHOO - Free Report) recently announced the acquisition of task manager app Astrid for an undisclosed amount. The terms of the deal were not disclosed.
Launched in 2008 and co-founded by Tim Su, Astrid is a leader in the email management and to-do app space. Currently, the app runs on iPhone, iPad, Android, Windows and mobile web. The app helps to create lists and reminders and share them with others. Additionally, the app integrates with Siri on iOS to add voice-based reminders.
Management stated that the task management app will continue to operate for another 90 days and will be closed down thereafter. Astrid will no longer accept any new premium subscriptions and the current paid members will receive a refund.
Yahoo is marching ahead with its plan to acquire start-up companies. Its recent purchases include Summly, a news condenser app maker; Stamped, a mobile review app maker; OnTheAir, which specializes in broadcasting video chats or interviews to online audiences; Snip.it, which is a kind of clipping service for the web; Propeld, a location-based apps maker and Jybe, a social recommendation site.
The acquisitions are a part of a strategy to broaden and strengthen Yahoo’s expertise in the mobile segment as adoption of mobile devices such as smartphones and tablets continues to accelerate.
With these acquisitions, Yahoo is picking up a whole lot of engineering talent as well as key technologies and products at a cheaper rate. These acquisitions can help Yahoo enter the emerging social marketing segment, where its rivals have already established themselves.
The acquisition will help Yahoo to strengthen its mobile offerings as it has already lost its leadership position in display advertising to Facebook (FB - Free Report) and Google . With search advertising revenues on a decline not only because of Google but also Microsoft ((MSFT - Free Report) ), Yahoo needs to focus on other major growth markets and emerging geographies.
However, in the last reported quarter, Yahoo’s search business continued to show signs of improvement, although pricing remained a concern. Currently, Yahoo has a Zacks Rank #1 (Strong Buy).