Yahoo! Inc. (YHOO) Seems to Be Playing a Good Game

Page 2 of 2

Important acquisitions

A series of announcements made by Yahoo! last week, coupled with acquisitions it has made over the past few months, reflect its quest to be a formidable player in the tech space. It has taken steps that are propelling it from being a run-of-the-mill tech stock to one that deserves just as much consideration, if not more, from investors who’ve turned their attention to its rivals.

Recent announcements include its $1.1 billion acquisition of Tumblr. Yahoo! Inc. (NASDAQ:YHOO) plans to add display ads to the photo-sharing site, considering its lackluster performance in this area. We’ll see how this works in Yahoo!’s ability to capitalize on Tumblr’s estimated 300 million users.

Prior to the Tumblr transaction, you may have been hard pressed to find someone who would have predicted Yahoo! would make a such grand entry into social media, mobile, and cloud storage almost all at the same time. On top of Tumblr, Yahoo! also announced improvements to the photo-sharing service Flickr. Subscribers will now have access to a mind boggling one terabyte of storage space!

Mayer said that the company anticipates seeing some return on the Tumblr acquisition some time next year. This will indeed be crucial. Not only will it be the biggest test yet that the new CEO, who hails from Google, has truly set the company on a turnaround path. It will also indicate if Yahoo! Inc. (NASDAQ:YHOO) has implemented enough strategies to be considered more than just a web portal.

Yahoo! still has a long way to go in terms of catching up with Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG), however, the strides that the company is making will do wonders in helping it improve its position.

The article Yahoo! Seems to Be Playing a Good Game originally appeared on Fool.com.

Tedra is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2