Yahoo! Inc. (NASDAQ:YHOO) Chief Executive Officer Marissa Mayer is at it again. Since taking the helm of the search giant, the company has snapped up at least 17 companies, including the video app startup Quiki earlier this month, and today there’s yet another one. This time it’s the startup AdMovate, which claims special expertise in mobile advertising.
Most would say this is the area where the company needs the most help in, and its stock price shows. Shares of Yahoo! Inc. (NASDAQ:YHOO) rose as much as 9 percent after the announcement. On Tuesday after the company’s weak earnings report, shares were falling.
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Yahoo makes the announcement
The announcement about the acquisition was made on Yahoo! Inc. (NASDAQ:YHOO)’s official Tumblr blog page. It indicates that AdMovate’s technology is designed to enable advertisers to reach out to “their desired audience at the right time and place.” The company highlights how important this is particularly for mobile ad experiences.
According to Yahoo, the acquisition of AdMovate is part of its attempts to invest more in its Apt, Genome and Right Media ad tech platforms “and make buying easier for advertisers and agencies.” As would be expected, the AdMovate team will join Yahoo! Inc. (NASDAQ:YHOO)’s display ad team.
Yahoo finally aims at advertisers
Just before Yahoo’s latest earnings report was released, some had noted that the company’s biggest problem was that CEO Mayer wasn’t doing enough to attract advertisers. It’s certainly clear that she’s done plenty to improve employee morale and the company’s reputation, but advertising directly affects the company’s bottom line.
She’s been on a shopping spree acquiring company after company since she came on board, and finally we have an acquisition here that might help Yahoo! Inc. (NASDAQ:YHOO)’s advertising revenue. This could be why investors are responding so positively to this particular acquisition. After all, yesterday’s earnings report indicated a 12 percent year over year decline in display ad revenue, so clearly the search giant needs a boost in advertising in order to lift future earnings reports.