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Yahoo Snaps Up Del.icio.us


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December 09, 2005

Yahoo Snaps Up Del.icio.us

Heather Green

Just talked to Joshua Schachter, who emailed to say that he sold del.icio.us, the innovative tagging service, to Yahoo.

First things first. He wouldn't say how much Yahoo paid for the service, which now has 300,000 subscribers. But he said he did the deal because he felt it would help the service, which he launched at the end of 2003, grow more quickly than it could have on its own. "We're going to continue to build our vision but with more resources, technology and distribution," he says.

Del.icio.us will continue operating as a stand along service at the same time as Yahoo will integrate more of the tagging technology across its network of offerings.

If it sounds like the approach Yahoo took when it bought the photo sharing service Flickr, it is. Joshua says that he believes they have learned to avoid the problems they ran into with alienating some of Flickr's passionate users. Joshua says he also has ideas on how to deal with any kind of merging of the two. Let's all hope so....

FYI. Joshua says there isn't going to be a press release, which is typical of smaller deals.

Update: Here's a link to his blog and their investors Union Square Ventures.

02:05 PM

M&A

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Listed below are links to weblogs that reference Yahoo Snaps Up Del.icio.us:

? del.icio.us acquisition shows community valuable from Greg Yardley's Internet Blog

del.icio.us has been bought by Yahoo. I've been sitting on this one for a bit; am glad that it's out. I can keep a secret but that doesn't mean I like to keep a secret. First off, congratulations to Joshua. And to Seth and Fred, who (among others) ... [Read More]

Tracked on December 9, 2005 03:08 PM

? MyWeb.icio.us? Yahoo acquires del.icio.us from Things That ... Make You Go Hmm

Busy week for Yahoo. News that they were going to add VoIP to messenger, then Yahoo Answers, and now the announcement that Yahoo has bought tagging sensation del.icio.us:

And just like we??e done with Flickr, we plan to give del.icio.us the re... [Read More]

Tracked on December 9, 2005 03:59 PM

?? Yahoo Buys Del.icio.us from Bloggers Blog

It will be interesting to see how Yahoo blends it in with its social bookmarking tool called My Web 2.0. There are many bookmark sharing tools like LookSmart's Furl, SearchFox, Kaboodle, Simpy, Jots and Spurl but del.icio.us is the most popular. [Read More]

Tracked on December 9, 2005 05:07 PM

?? Yahoo! Acquires Del.icio.us Tagging Site from B.L. Ochman's weblog - Internet and corporate blogging strategy, and online marketing trends, with news and commentary

Yahoo!, which already owns the shared tagging site Flickr has acquired del.icio.us, according to Search Engine Watch blog. Del.icio.us now has 300,000 subscribers. What are they going to call it? How bout Yah.lic.ious! Tagging allows the creator of inf... [Read More]

Tracked on December 9, 2005 06:11 PM

?? del.icio.us RIP from intradink

This is probably the worst news I've heard in ages. I'm a long time user of del.icio.us and love it's simple interface, open standards, ad free, and extensability. Joshua, please provide some more information on how del.icio.us will mutate... [Read More]

Tracked on December 13, 2005 05:12 AM

?? del.icio.us has joined the Yahoo! family from ECTIO

via del.icio.us blog

We're proud to announce that del.icio.us has joined the Yahoo! family. Together we'll continue to improve how people discover, remember and share on the Internet, with a big emphasis on the power of community. We're excited to be wo [Read More]

Tracked on December 13, 2005 08:12 AM

So, was this story broken by a blog?

I haven't checked yet, but what other blogs were contacted and have posted the news.

No news release? But, since Yahoo! is public, doesn't the SEC require it?

From a PR perspective (my job), very interesting.

Mike

Posted by: Mike Driehorst at December 9, 2005 03:21 PM

Hi Mike,

So here's the skinny. Joshua emailed to say Yahoo had bought the company and asked if I wanted to chat. I called right away and he had wanted to give a headsup to a few people. Probably because I have covered his company in the past. I didn't check if it was on his blog first, should have!

Posted by: Heather Green at December 9, 2005 04:00 PM

I'm not an expert on the SEC, but I think the rule of thumb is that when an acquisition is not a major portion of a company's bottom line, they are not required by law to disclose financial terms of the deal.

Posted by: Jay DeFoore at December 9, 2005 04:12 PM

Jay,

I think that's right, too. My understanding is that if it's not material (read a small deal), you don't have to put out a release.

Posted by: Heather Green at December 9, 2005 05:04 PM

Define small deal: in the case of Yahoo! small could be millions. Small for Yahoo! maybe, but I bet del.icio.us thinks it's a great deal.

Hooray that there is no press release! They're an old and tired way to communicate news. Blogs will spread the news quickly and efficiently.

Posted by: B.L. Ochman at December 9, 2005 05:34 PM

Ohhh yeah, believe me the millions that del.icio.us must have gotten wouldn't be immaterial to me! But as to the hard and fast points to the rule, I don't know what it would be.

Posted by: Heather Green at December 9, 2005 05:55 PM

I never really understood the idea of shared bookmarking. It seems to me that everybody has different bookmarks, simply because everybody has different information needs. These social bookmarking sites are very popular and as a result have a lot of value. Is there a Business Week bookmark site? Thanks.

Posted by: Jim Dermitt at December 11, 2005 08:31 AM

I just posted a bit at the Tech Beat, where they are covering this. I think the goal Yahoo has is improving search results, which also means better ad placement and what could develop is an entire new method for finding stuff online. You could have less ads that are better targeted. Who wants more ads all over the screen? You could also argue that there are more ads because there is more demand. I've seen sites with more ads than actual content written by people. It seems to me that as search results improve, the need for ads decreases. I guess it could get to the point where things are so easy to find with search results, that you could find most anything without ads. Of course search results often give you poor results because they are so automated, like the telephones are (push #1 to talk to a person). There are ways around telephone automation. People are innovative. Yahoo could replace crawling the web with walking and talking the web.

It should be a big seller!

Posted by: Jim Dermitt at December 11, 2005 09:50 AM

There is so much information on the internet even on niche topics that it becomes very difficult or impossible to keep up with the topics of one?? interest. Tagging allows people to find out and store what others have found useful on a given topic. Hence sites like del.icio.us are great sources of useful information, since all that you find on these sites are the favourite articles or blogs of people.

The aim of most of the web entrepreneurs is to get acquired by a bigger player in return for a multi-million dollar fortune, and hence no surprise that Joshua sold his brainchild to an internet powerhouse. For Yahoo, this acquisition takes it one step closer to being the one-stop portal of the future. With all the hoopla surrounding Web 2.0 (a term no one is quite sure what it means), this indeed sounds like tech bubble 2.0! But as someone said, you never know you are in a bubble until it goes 'plop'. We??l know in a few years?time…

Posted by: Luv Sayal at December 11, 2005 11:24 AM


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