The Law Office of Lynnette Ariathurai A Professional Corporation

California Web company Yahoo does business merger with Jybe

Sometimes, it is necessary for companies to expand their operations and services in order to increase revenue and gain larger profit margins. One common way to do this is through acquiring other businesses, usually small start-up businesses. Yahoo, the largest U.S. Web portal - which is located in California - has recently arranged a business merger by acquiring another smaller Internet company.

Jybe offers Internet users personalized recommendations based upon information gathered via social media networks. However, this is not the only company which Yahoo is looking to acquire. The Web portal giant has also stated that it is looking to purchase as much as a 75 percent stake in the video site Dailymotion. Reports have indicated that the video site is worth approximately $300 million.

Yahoo's CEO says she is planning on focusing the company's efforts towards providing customized Web services. The company also plans on adding more engineers to its roster in order to implement these plans. Yahoo plans to do this by purchasing other smaller technology companies which may possess the resources that Yahoo believes could be profitable.

This recent business merger is a significant move by Yahoo. The California company hopes that it will enable it to provide expanded and more customized services to web users. However, when making acquisitions such as this, it is necessary to ensure that all the details are covered, including all of the legal documents to transfer ownership properly. Every situation is different, therefore careful consideration of all the facts and applicable laws is recommended.

Source: Bloomberg, "Yahoo Buys Jybe as Portal Adds Engineers Via Acquisitions," Douglas MacMillan, March 20, 2013

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