Contact: Scott Denne
Yahoo tops off its push into mobile apps by picking up Flurry, a vendor that offers an app analytics service and generates revenue through an ad network that leverages the data and publisher relationships from the service.
While Yahoo has been among the most acquisitive companies over the past few years, its purchases have been focused on expanding its mobile development team and its content. In fact, Yahoo hadn’t acquired any technology to help monetize content since the $270m pickup of interclick in late 2011. Though terms of the Flurry buy weren’t disclosed, various reports put it in the same neighborhood as that acquisition ($200m-300m).
Flurry’s business is operating a mobile ad network. Those companies rarely fetch high multiples because the business is precarious and driven by individual ad campaigns, rather than long-term subscriptions or licenses. Recently sold ad networks such as AdColony, Adconion and Jumptap have fetched 1.3-2.7x trailing 12-month revenue. In Flurry’s sale, however, we expect that the value of the target’s deep mobile audience data drove the multiple above that range.
For more real-time information on tech M&A, follow us on Twitter @451TechMnA.