Yahoo! Inc. (NASDAQ:YHOO) may be starting a buying spree.

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Yahoo set to purchase Flurry

The web site Recode, according to people with knowledge of the situation, is reporting that the search, e-mail and content developer is purchasing Flurry, a mobile analytics and ad platform company.

The buyout deal is expected to be announced later today, the Recode web site said, quoting unnamed sources.  While Recode is quoting a price in the “hundreds of millions” for San Francisco-based Flurry, Tech Crunch is quoting a $300 million price tag.

Flurry was known to be one of Steve Jobs favorite analytics companies. The company was founded in 2005 and describes itself as “optimizing the mobile experience for developers, marketers and consumers through personalized ads and mobile analytics.” The company recently launched, for example, a new video advertising solution for app publishers.

Flurry higher quality playback by pre-caching video ad assets

The video advertising application delivers higher quality playback by pre-caching video ad assets, according to a Flurry press release, and lets publishers tailor the user experience through non-skippable and auto-play controls. “This gives advertisers better exposure and improves campaign conversions,” Flurry claimed. The application is also personalized.  Flurry Persona bundles age and gender audience data with every Flurry impression which enables publishers to demand higher eCPMs because advertisers have more visibility into the audiences they are reaching.

The move to acquire Flurry is an interesting one for Yahoo! Inc. (NASDAQ:YHOO), notes Recode’s Kara Swisher.  Pulling a page out of the Facebook and Google playbook, Yahoo has been attempting to build its mobile efforts as quickly declining display advertising and PC-based business pose challenges in monetizing eyeballs. “That said, its mobile business — while laudable — is still small — so small that the company still does not break out its revenue or any tiny profits it might have realized,” she said.

Flurry’s funding by Venture Capital players

Flurry had just received over $70 million in funding from tech Venture Capital players such as Draper Fisher Jurvetson and First Round Capital, who will be seeing a quick return on their investment.  Its last $12.5 million round of funding was in December, according to the article.

The article noted the company has “brought in a lot of experienced execs over the last year, including former Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) exe Prashant Fuloria as chief product officer in April of 2013.” Flurry added a new COO and CFO in the fall, after CEO Simon Khalaf had said the company was cash-flow positive and hinted at a possible IPO.

Perhaps Yahoo! Inc. (NASDAQ:YHOO) may have visions of Alibaba and its successful IPO dancing in its head?