Yahoo! goes OnTheAir in latest app acquisition
Wednesday, December 5, 2012/
Yahoo! has acquired video chat broadcasting app OnTheAir in a bid to further expand its mobile offerings, less than two months after acquiring mobile recommendations app Stamped.
OnTheAir, which is based in California, connects people via live video chats. It allows friends to chat to each other, while content products can webcast single or split-screen interviews.
Just nine months after its launch, OnTheAir has been acquired by Yahoo! for an undisclosed sum.
All five OnTheAir team members will now join the mobile team at Yahoo! under Adam Cahan, Yahoo!’s senior vice president of emerging products and technology.
“Hiring the most talented mobile product thinkers and engineers is a big priority for us moving forward,” Cahan said in a statement.
“We can’t wait to work with [OnTheAir] to create the best possible mobile experience for our users.”
It’s been suggested the OnTheAir team could help Yahoo! compete with Google Hangouts. The start-up, which announced the news on its website, said it is excited to be joining Yahoo!
“When we started OnTheAir, we had dreams of building a company that made a difference in the daily lives of millions,” it said.
“We put in late nights together. We debated intensely. We worked like crazy to build a product we were proud to put our name on.
“When we first met with the team at Yahoo!, it was clear that everybody there is committed to making mobile products the backbone for the world’s daily habits.
“All in all, it’s a fascinating time to be joining Yahoo!. There’s a tremendous amount of energy in the company.
“There are big things to be done and great products to be built, and we’re thrilled to be a part of it.”
The news comes less than two months after Yahoo! acquired mobile recommendations app Stamped – its first acquisition under the direction of new chief executive Marissa Mayer.
Despite being just one year old, Stamped has attracted investment from a number of major venture capital firms and celebrities including Google Ventures and US pop star Justin Bieber.
At the time of the announcement, Mayer said any future acquisitions would be less than $100 million, so it’s fair to say OnTheAir fell into this price range.
The Stamped deal was also believed to be less than $100 million.