Yahoo has announced that it will be purchasing Tomfoolery, a social networking software startup. The terms of the deal were not made public although a report in the Wall Street Journal estimated a price of around $16 million. The deal is expected to close in early February. Tomfoolery is best known for a product called Anchor. Anchor provided many social networking functions aimed at businesses such as voice calling, group chat, file sharing and email. The features of Anchor would typically be found using multiple third party applications such as Microsoft Outlook, Microsoft Lync, or Facebook.
The Anchor social networking software platform could be accessed from a desktop or laptop via a web interface; however it’s primary use was developed for mobile technologies such as iOS and Android devices. As of last Wednesday new user registrations were disabled as the Anchor product will be shut down as part of the acquisition deal with Yahoo. Tomfoolery has stated that it will be building the next generation of social Yahoo products.
Yahoo has been buying up a lot of companies as of late. Marissa Mayer, the current CEO of Yahoo is definitely trying to regain the popularity that Yahoo has once had in it’s hay day years ago. Taking a page from Disney and purchasing popular franchises to reinvigorate the primary business, Disney has done a complete 180 from where they were just a few years ago. Can the same thing happen with Yahoo? During a recent conference regarding Yahoo’s recent financial results, Mayer stated that the company would continue to look for opportunities for talent acquisitions.
Some of the leaders of Tomfoolery were once involved with various Yahoo services including Flickr, Messenger, Mail and Search. Having a good understanding of the various Yahoo products on the market today should make integration of the next generation social networking software of Yahoo fairly seamless.