To make up for the mistakes of the mobile internet and social networks, Yahoo continues to pursue a crazy merger

To make up for the mistakes of the mobile internet and social networks, Yahoo continues to pursue a frenzy of mergers and acquisitions. A few days ago, Yahoo confirmed the latest acquisition: image recognition start-up company IQ Engine.

This is Mariza Meyers (Marissa Mayer) as Yahoo CEO after the 19th acquisition.

Although Yahoo has been acquiring a number of consecutive companies, resulting in a sharp decline in cash reserves, but it still holds about 24% of Alibaba's stake, and Alibaba if the recent listing, will again bring its huge cash. The industry therefore believes that as there is no cash flow pressure on Yahoo in the next few quarters or continue to merge.

Yahoo declined to disclose the specific terms of the acquisition, although the IQ engine team confirmed in a bulletin that they would join the Flickr team in "Improving photo management and search". This June, Yahoo announced the acquisition of photo application Ghostbird, also to improve Flickr.

According to the "First financial daily" reporter statistics, this is already since Mayer as CEO, Yahoo publicly disclosed the 19th acquisition.

Yahoo's second-quarter earnings in fiscal year 2013 showed that its GAAP (generally accepted accounting) earnings were 1.135 billion U.S. dollars, down 7% from a year earlier, and two major sources of income were display advertising and search, with varying degrees of decline in the quarter.

Former Yahoo China general manager Xie that, for Yahoo, in the new area Yahoo has long time no innovation, keep up with the development of the situation, only through acquisitions to make up for the shortfall, resulting in aggregation effect.

The frantic merger seems to have worked, and the market Research Institute, comscore, ranked the U.S. website traffic for July 2013 for the first time in five years. Since 2008, the U.S. Web site traffic ranked first has been the Google site group.

It is not optimistic that in the last quarter, Yahoo announced a revenue of 1.1 billion U.S. dollars, year-on-year decline.

Although Mayer tried to make Yahoo "a big change" by buying start-ups and changing corporate culture, it is still in the consolidation phase.

In September 2012, Ms. Mayer soon decided to transfer 40% of Yahoo's stake in Alibaba, trading at $7.6 billion trillion. Yahoo's short-term gains were clear: Yahoo's shares were $15.65 last July 16, and this July 16, its share price rose to $26.88, up 71.8%.

In the last quarter, Yahoo's cash reserves were $5.4 billion trillion. But as a result of successive acquisitions, Yahoo's cash reserves have fallen sharply. Yahoo's cash, cash equivalents and negotiable securities total assets were $4.8 billion trillion, down from $6 billion trillion over the same period last year, according to Yahoo's 2013 Q2 earnings, as of June 30, 2013. Among them, the acquisition business costs a net cash amount of 1 billion dollars (including the acquisition of Tumblr net cash amount of $970 million).

"If Yahoo continues to implement a mobile priority strategy, it may need to continue the acquisition; Wang Yu, senior strategic analyst at the Internet industry, believes that while Yahoo's cash reserves have fallen, its stake in Alibaba is a "gold mine" that hides huge cash flows.

According to the 2013 Q1 earnings, Yahoo said its stake in Alibaba is worth 453 million dollars.

With Alibaba's IPO window looming, Yahoo has an obligation to sell at least half of its remaining shares under an agreement between Yahoo and Alibaba. If, according to Alibaba's billion-dollar valuation, Yahoo is selling half its stake, it could be $ billions of trillion.

"Mayer can still buy wildly without leaving Yahoo stranded in a capital-starved operation. Wang Yu that, with Ali this "gold mine", Yahoo in the capital market and capital aspects have no worries.

He also pre-contract, Yahoo will also carry out a series of mergers and acquisitions in the near future.

The company involved in the last year's Yahoo takeover:

2012

October: Social sharing application stamped

December: Video chat platform on the Air

2013

January: Content sharing tool snip.it

February: Internet content integration Platform alike

March: Personalized social referral Platform Jybe News content streamlining tool Summly

May: Astrid, tourism incentive tools milewise, election product Gopollgo, mobile gaming studio Loki, light blog Tumblr

June: Photo Application Ghostbird Conferencing Solution provider Rondee

July: Mobile game application developer Bignoggins Mobile video sharing application Qwiki email Address Book Application Xobni Mobile advertising company Admovate social platform Big Data analysis Company intelligence extension Tongda