Comments on: Yahoo acquires Flickr-Team 2 http://ec20.wordpress.com/2007/10/16/yahoo-acquires-flickr-team-2/ EC 2.0 for EC 2007 Tue, 11 Dec 2007 23:21:57 +0000 http://wordpress.com/ hourly 1 By: Team 3 http://ec20.wordpress.com/2007/10/16/yahoo-acquires-flickr-team-2/#comment-28 Team 3 Tue, 23 Oct 2007 10:07:00 +0000 http://ec20.wordpress.com/2007/10/16/yahoo-acquires-flickr-team-2/#comment-28 We have not seen any real major use of the FLICKER acquisition towards Yahoo. Except for the help in image searching, We think that this acquisition was not the best purchase that Yahoo has made. In our opinion its not one of the acquisitions that had a great impact on the internet community. Probably one of the benefits could be to draw traffic from FLICKER, Yahoo would acquire FLICKER's users and thus increase their traffic or it could be part of an strategy to reinforce their core competences and inject new ideas to Yahoo as Team 6 considered on their Post (Yahoo acquires e-mail software maker Zimbra). Maybe its a working progress and they have other plans for FLICKER that we have not seen so far. We have not seen any real major use of the FLICKER acquisition towards Yahoo. Except for the help in image searching, We think that this acquisition was not the best purchase that Yahoo has made.

In our opinion its not one of the acquisitions that had a great impact on the internet community. Probably one of the benefits could be to draw traffic from FLICKER, Yahoo would acquire FLICKER’s users and thus increase their traffic or it could be part of an strategy to reinforce their core competences and inject new ideas to Yahoo as Team 6 considered on their Post (Yahoo acquires e-mail software maker Zimbra).

Maybe its a working progress and they have other plans for FLICKER that we have not seen so far.

]]> By: Joseph Chao http://ec20.wordpress.com/2007/10/16/yahoo-acquires-flickr-team-2/#comment-4 Joseph Chao Tue, 16 Oct 2007 18:56:42 +0000 http://ec20.wordpress.com/2007/10/16/yahoo-acquires-flickr-team-2/#comment-4 We can consider this acquisition from below two points. 1. Flickr benefited from this acquisition. (1) Flickr was acquired by Yahoo in March 2005, when Flickr was just on the border of becoming cash flow breakeven. According to Alexa, Flickr’s traffic is up >10X since the acquisition, so the company was able to extend its reach outside of its initial core user community. (2) Flickr got $40 million. 2. Yahoo benefited from this acquisition. (1) Flickr was acquired into the Yahoo search group, thus indicating Yahoo’s intention to integrate Flickr photos into the general image search engine. It’s interesting that the acquisition was not initiated by the Yahoo Photos group, thus revenue, revenue growth, and profit were not the main motivations for the acquisition. (2) Flickr had developed a robust tagging platform that could be applied to other Yahoo products. (3) Yahoo was interested in acquiring the people behind Flickr and absorbing their thinking and DNA into the company. (4) The least important factor in the acquisition was the user community that Yahoo acquired. While Flickr’s growth and buzz were important in validating the technologies that Flickr pioneered, the sheer number of Flickr users was not an important factor in the acquisition. Thus, at its heart, the Flickr acquisition should be thought of as a technology and people acquisition. We can consider this acquisition from below two points.
1. Flickr benefited from this acquisition.
(1) Flickr was acquired by Yahoo in March 2005, when Flickr was just on the border of becoming cash flow breakeven. According to Alexa, Flickr’s traffic is up >10X since the acquisition, so the company was able to extend its reach outside of its initial core user community.
(2) Flickr got $40 million.

2. Yahoo benefited from this acquisition.
(1) Flickr was acquired into the Yahoo search group, thus indicating Yahoo’s intention to integrate Flickr photos into the general image search engine. It’s interesting that the acquisition was not initiated by the Yahoo Photos group, thus revenue, revenue growth, and profit were not the main motivations for the acquisition.
(2) Flickr had developed a robust tagging platform that could be applied to other Yahoo products.
(3) Yahoo was interested in acquiring the people behind Flickr and absorbing their thinking and DNA into the company.
(4) The least important factor in the acquisition was the user community that Yahoo acquired. While Flickr’s growth and buzz were important in validating the technologies that Flickr pioneered, the sheer number of Flickr users was not an important factor in the acquisition. Thus, at its heart, the Flickr acquisition should be thought of as a technology and people acquisition.

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