Reportedly, Yahoo Inc. (YHOO) has acquired the cross-platform video streaming startup — QuikIO. The financial details of the deal have not been made public.
QuikIO app allows users to easily stream, download and share files and videos from computers to Apple’s (AAPL) iOS devices regardless of the location and without the hassle of syncing or converting files. In order to assure iOS compatibility, the QuikIO app automatically converts video and audio files for storage.
Per the deal, QuikIO’s employees will join Yahoo’s video team and its apps for iOS, Mac and Windows will close down and no longer be available for download.
With this acquisition, Yahoo seems to continue with its strategy of refocusing its offerings on its mobile and video business. In keeping with the strategy, it is acquiring small firms with some strategic value. We believe this acquisition appears to be geared more toward acquiring the engineering talent than technology.
Yahoo is marching ahead with its plan to acquire struggling startup companies. With this acquisition, the company has taken its year-to-date acquisition tally to 29. The company acquired microblogging platform Tumblr in June, followed by the acquisition of mobile advertising specialist AdMovate a month later. It recently acquired natural language processing firm, SkyPhrase, mobile photo and video editing app Ptch, and Evntlive, an online platform for live concerts.
In the third quarter of 2013 alone, Yahoo purchased eight companies, including Lexity, Rockmelt and Xobni, with the net cash impact of those purchases totaling $163 million.
Yahoo’s search business continues to show signs of improvement, even in the face of tough competition from Facebook (FB), Google (GOOG) and Microsoft (MSFT). Currently, Yahoo has a huge task at hand, which is to retain and add to its user base and make them spend more time on its properties. This would play an important role in bringing back advertisers as well.
However, the inability to protect user information could damage its reputation and affect credibility, thus slowing down financial growth and pulling down stock prices.
Currently, Yahoo has a Zacks Rank #3 (Hold).