American search company Yahoo has purchased app analytics enterprise Flurry in a bid to boost its advertising revenue generated from smartphones.
The analytics firm assists app developers in analysing data and discovering behavioural patterns among users in order to tailor and deliver a series of more personalised adverts. The California-based internet company’s decision comes as a response to some of its closest rivals also purchasing mobile advertising businesses to generate more revenue, with the company reporting that profits have fallen by 18% during the latest financial quarter.
The deal’s financial specifics were not disclosed by either company, but many news suppliers suggest that the fee is somewhere in the region of £117m and £175m. Should this information be correct, Flurry would become Yahoo’s largest acquisition since the purchase of social blogging network Tumblr for £723m in May 2013.
Yahoo is trying to establish a reputation management strategy that will help the company enhance its image, after seemingly falling behind the times – and its competitors.
Simon Khalaf, Flurry’s Chief Executive, released a statement confirming the deal, in which he explained:
“With Yahoo, we will have access to more resources to speed up the delivery of great products that can help app developers build better apps, reach the right users, and explore new revenue opportunities.”
Worldwide demand for portable devices, including smartphones, has expanded over recent years, meaning that an increasing number of people access the internet this way, rather than using desktop computers. This fact has prompted internet giants like Yahoo, Google and others to devise strategies to enhance revenue from portable devices.