Acquired by

ACQUISITION

• A transaction where one firms buys another firm with the intent of more effectively using a core competence by making the acquired firm a subsidiary within its portfolio of business

• It also known as a takeover or a buyout• It is the buying of one company by another. • In acquisition two companies are combine together

to form a new company altogether.• Example: Company A+ Company B= Company A.

ACQUISITION:WHY & WHY NOT

3

i. Increased market share.

ii. Increased speed to market

iii. Lower risk comparing to develop new products.

iv. Increased diversification

v. Avoid excessive competition

i. Inadequate valuation of target.

ii. Inability to achieve synergy.

iii. Finance by taking huge debt.

WHY IS IMPORTANT PROBLEM WITH ACUIQISITION

ACQUISITIONS

What is Yahoo?  

Company Overview:• “The world’s largest global online network of integrated services”• Achieved -21 million local/ regional users in the U.S. &

90 million globally• Trade info - “you give me and I’ll give you”• Founded by David Filo and Jerry Yang in 1994• Initially called "Jerry and David's Guide to the World Wide Web,”• Yahoo stands for "Yet Another Hierarchical Officious Oracle”• Now, it would inspire people to produce a positive impact

on their communities

Competitors:• Google through iGoogle• MSM through Bing• AOL

Segmentation and Target Audience:• Yahoo is for all internet users; for all ages. • However, the company knows how to segment people

according to their geographic areas• Example: Yahoo! Maktoub for people in the ME and Arab

world

• Function: Is to search for information on other websites. (mainly a search engine)

• Status: it gives out passive information where the website doesn’t allow people to interact while using it. The website is sometimes interactive when viewers comment by sending e-mails or uploading comments

• Served Market: Yahoo works as a B2B and B2C website as it works for both viewers either customers or companies

• Market Coverage: The website is an international website that provides services for all viewers all over the world

• Entity Type: Yahoo is a sole proprietor that works individually without having a partner

• Yahoo has provided Yahoo Safely in the Middle East through the website “Yahoo oasis of safety" (http://esafe.yahoo.com/)

• The website works on educating Arabic native speaking children

• Andy Abbar, Chairman of the management and marketing of products in Yahoo Maktoob, said that he is pleased to support “Internet Security" where it helps in bringing the attention of people in the Middle East where families are not fully aware of the safety of the Internet (Clark, 2011)

BookPad

• Bookpad is a start up that is not even one one year old. This was founded by three IIT-Guwahati passouts.This start up has been acquired by Yahoo.

• The actual deal value $15 Million i.e Rs. 90 crore. Bookpad's founders are Aditya Bandi, Niketh Sabbineni and Ashwik Battu who have graduated from IIT-Guwahati.

• Yahoo's aim to buy this startup is its enterprise product DocsPad, which allows users to view any document (like PDF, Word, PowerPoint), as also edit and annotate it, within a website or app.

Continued

• This App works across devices, • Yahoo can embed this as a service in many of its

programs. • It does looks like a rival product to Google Drive, and

with Billions of Documents uploaded on cloud each year, the prospects for this product are quite great.

YAHOO ACQUIRES BOOKPAD

• Deals worth rupees 50 crore• flagship product,- Docspad, is targeted at app developers• who wish to make document viewing and editing.• files in real time, without having to download the file and access it in

a separate application.• When a user uploads a document, the client's website

communicates with Docspad's server, which converts that document into HTML 5 and enables users to preview and make edits. 

Continued

• Bookpad itself is a young company, founded in 2013, • Supported early on by NASSCOM and Microsoft

Ventures Accelerator,• Docspad is the one of product of Bookpad, • Bookpad's six employees will join Yahoo's engineering

team in Bangalore, .

On the News

View of Docspad