Yahoo can't seem to pass a single week without snatching up one startup. This week, Yahoo acquired Xobni. The name might be tricky to say (it's "inbox" spelled backwards), but the once small startup has something that Yahoo wants. Xobni is an email management system that attempts to organize all of your contacts into neat little folders.
Xobni already has products for Gmail and Microsoft's Outlook, so the startup is already poised and in perfect position for Yahoo's takeover. Why does Yahoo want Xobni? Because Yahoo wants to be everywhere that you are, and that includes in your inbox. Not familiar with what Xobni does? Here's a look at Yahoo's latest $30 million (roughly) acquisition.
Xobni's technology takes every contact you've ever connected with (via phone, networks, text), and organizes those contacts into folders that work. The company also works with large enterprises to control and catalog a company's many contacts (for a small fee). Xobni also has mobile and PC versions.
Xobni was mostly used by small businesses, and some individual consumers. Now that Yahoo has purchased the startup, users can expect more changes to come. The Xobni team is moving to Sunnyvale from San Francisco, but that's not the only change that's coming.
Changes Are Underway
Yahoo has made some immediate change announcements including not allowing any new Premium Product purchases. Xobni is making so many changes at Yahoo's request that the company has set up an entire FAQ page on its website. If you are a Xobni customer, you will receive everything that you've paid for. The changes are really all about getting new products or signing up for something different.
Yahoo wants to make this acquisition as smooth as possible for all involved. This is the best way for Yahoo to keep all of Xobni's clients happy (and still make out with a decent deal). Since Xobni is not the only company acquired by Yahoo, it will be interesting to see how these many recently purchased startups will react to the new Yahoo environment.
Was Xobni worth the millions spent to acquire the company? Only time will tell, but it doesn't look like Yahoo is slowing down with the purchasing any time soon.
Yahoo's Spending Spree
Yahoo wants to be back in a big way, and (for the company) that means acquiring all the best little startups out there. Xobni is just one of many that Yahoo has been buying out lately. While startup founders are more than happy, all of this money spent is a big gamble for Yahoo. The company is hoping to stay in touch with younger consumers through the buy-outs, but this is a tough thing to do.
Yahoo has to choose the right startups to purchase, or all of this money will be spent for nothing. Since today is a holiday in the United States, Yahoo isn't purchasing any additional startups today, but you can expect this spending spree to continue will into the year. Do you use Xobni? What do you think of this purchase?