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Yahoo acquires Del.icio.us

Financial terms were not disclosed.

     
10:47 pm on Dec 9, 2005 (gmt 0)

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Yahoo Inc., the world's largest Internet media site, had agreed to acquire Del.icio.us, a popular Web site that helps users share links to their favorite Web sites, the site's founder said on Friday.

Joshua Schachter, the founder of Del.icio.us, confirmed a posting on the New York-based start-up's site that the company had been acquired by Yahoo. A Yahoo spokeswoman confirmed that the agreement to buy Del.icio.us had closed on Friday.

Reuters Story [today.reuters.com]

[edited by: jatar_k at 11:38 pm (utc) on Dec. 9, 2005]

12:56 am on Dec 10, 2005 (gmt 0)

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del.icio.us looks slightly more Yahoo-ish since the news hit , they've added a more accessible interface to the homepage w/ more emphasis on search. Hopefully they won't go overboard and plaster it with ads and Flash.
1:29 am on Dec 10, 2005 (gmt 0)

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Definitely, robjones. I was reading the post on Yahoo Answers earlier today. Compare the updated [del.icio.us...] homepage with [answers.yahoo.com...]

This acquisition really surprises me. First Flickr, and now del.icio.us. I really feel like both those sites were "cutting edge," full of techy early-adopters who are into the latest blogging trends and many of whom are developers/webmasters. Yahoo is really positioning themselves in the industry to get back some of the street-cred that Google stole.

1:36 am on Dec 10, 2005 (gmt 0)

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Seems to be a problem building Web 2.0 community-type websites from the top down, which is what Yahoo tried to do with Y360 (and Google with their Orkut, etc).

Better to buy it.

Too bad Yahoogle let News.corp snap up MySpace.

Nevertheless, this is a good day for Yahoo.

2:08 am on Dec 10, 2005 (gmt 0)

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> MySpace

I just don't get MySpace, sorry.
I signed up last month out of curiousity, but most of the MySpace pages I've checked out so far are so hard on the eyes - with seemingly little or no thought whatsoever to design, color harmony, or accessibility - that I guess I simply can't take the abuse on my senses, so I happily spend my time elsewhere - like here! :-)

4:10 am on Dec 10, 2005 (gmt 0)

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One of the next "big things" in this social/2/0 category may be LibraryThing.com. Over 10,000 members in three months almost all by word of mouth; I bet Amazon will make a bid for them one of these days.
4:47 am on Dec 10, 2005 (gmt 0)

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>> I just don't get MySpace

I guess you are in your 30's ...Seriously no one older than 25 gets myspace ,but its very very popular among its target demographics in this case its the 14-25 yr olds.

5:08 am on Dec 10, 2005 (gmt 0)

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I'm 19 and trying to read myspace pages drives me nuts too. ;-)

pretty surprising purchased, honestly. wonder how much it went for.

5:15 am on Dec 10, 2005 (gmt 0)

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i'm old and myspace makes me randy.....yeah baby yeah!
6:10 am on Dec 10, 2005 (gmt 0)

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This is the smartest acquisition of 2005. Now Yahoo! needs to get Technorati :)

Semel continues to impress me with his management of Yahoo!

6:12 am on Dec 10, 2005 (gmt 0)

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pretty surprising purchased, honestly. wonder how much it went for.

I'm sure if Joshua would've gotten an offer from Google, the price would have been a bit higher. On a related note, how did Google miss it? Guess they don't want to be delicious.
7:08 am on Dec 10, 2005 (gmt 0)

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No offense to the developers but just exactly how does del.icio.us qualify as Web 2.0? Or for that matter what is so "cutting edge" or "innovative" about it?

I'm really glad for them and all, but there isn't anything even remotely revolutionary or unique about what it does, and it has been done a zillion times before... the only difference here is that they managed to achieve some moderate success and some large company decided to buy them. God save the future of the economy and technology if you only need some success to be considered "cutting edge"

8:23 am on Dec 10, 2005 (gmt 0)

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Web 2.0 doesn't have a clear definition. But some of the things that keep getting mentioned are:

  • User generated content
  • Community
  • Sometimes it is said to have the so-called "disruptive" quality in that it makes people do things in a different way, usually to find or organize information in a new way.

My teenage niece uses myspace. She IM'd me last month asking how to hack past her school's firewall so she could get to myspace. I don't think anyone is hungering to get to Orkut or Yahoo 360 that badly.

My view on Google and Yahoo's entry into user generated content communities is that it has a top down quality to it that are similar to existing popular word of mouth grown services.

These popular sites with millions of users are like Google used to be, disruptive web destinations. Why duplicate when you can buy?

10:18 am on Dec 10, 2005 (gmt 0)

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<off topic> I laughed when I saw the AdSense ads on that Reuters page - all about Vets and the Military, presumably related to the .us ccTld in the domain name mentions. If anything's off-topic, those ads are! </off topic>
10:27 am on Dec 10, 2005 (gmt 0)

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To add to MB's Web 2.0 feature list:
  • API - a mechanism to automate the input and output of information to / from the service; often resulting in 3rd party hacks offering additional functionality.
3:41 pm on Dec 10, 2005 (gmt 0)

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Most popular saved pages and most popular tags are very rich for mining. This is the whole purpose for apps. like Del. Furl, Spurl etc.
NYTimes has figured this out by licensing Furl from LookSmart for use in their TimesSelect product. It's called TimesFile and is behind a paid wall. Management can enter the customers "file" and deliver ads pertinant to the customers taste.
They have a guy that saves everything he finds about travel to Fiji and they can bomb him with ads for travel deals to the Pacific Islands.
Forget the esoteric aspects of folksonomies it's about delivering ads and making cash.
5:49 pm on Dec 10, 2005 (gmt 0)

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I just don't get MySpace, sorry.

Imagine you are a 13 year old girl. You have an expensive PC in your room and a nice digital camera. You don't have a job or a car so you spend a lot of time at home, except for homework and going to the mall (where you take pictures with your digital camera). You and your friends like to post the pictures you take on the Internet. You are too cool to hang out with your family so when you are at home you spend a lot of time locked in your room on your PC.

In this case do you think you would use myspace?

6:59 pm on Dec 10, 2005 (gmt 0)

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Imagine you are a 13 year old girl.

Oh, that's why I don't get myspace ;-)

7:00 pm on Dec 10, 2005 (gmt 0)

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> Imagine you are a 13 year old girl.

How about a 45 year old man, yikes! ;-)

> In this case do you think you would use myspace?

I take it you're talking from personal experience, a daughter perhaps?

Obviously - MySpace is very popular with the younger generation(s) - I simply don't grasp why? that's all (guess "I'm over the hill" or "hills" as it were!).

In any event, I had a good laugh reading about "samy" and how he shut MySpace down not too long ago with his most ingenious hack (namb.la/popular/)

9:28 pm on Dec 10, 2005 (gmt 0)

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Any word on how much del.icio.us sold for? MySpace went for a ton - I'm sure this couldn't be too far behind, although MySpace's target audience must make advertisers drool.
10:13 pm on Dec 10, 2005 (gmt 0)

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I take it you're talking from personal experience, a daughter perhaps?

A friend's daughter.

10:27 pm on Dec 10, 2005 (gmt 0)

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> Imagine you are a 13 year old girl.

Back in 1996 I was corresponding with a 16 year old on AOL (being much closer to 16 then myself).

She told me about her trips to school each morning on her school bus--one of the hottest topics of conversation on the bus was using AOL IM's to find porn on the internet.

About the only thing that has changed since then is that computers are much faster and MySpace is way cooler than AOL...

Teens will always be teens.

10:28 pm on Dec 10, 2005 (gmt 0)

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>Teens will always be teens.

And that's why marketers love them - always easy to predict. ;-)

11:29 pm on Dec 10, 2005 (gmt 0)

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There are a couple rumors and speculations as to what the price tag was for delicious:

Om Malik guesses between $10-$15M based on how much money they raised and how many users they had (about 300K).

Other rumors have speculated as much as $30-40M

The reason that valuation has been linked to user base is that delicious has no revenues. In that sense, this acquisition is a strong argument for the return of eyeball driven valuations.

As far why they're considered cutting edge (and web 2.0), I think it's because they've found a neat way to enable lots of individual selfish actions (the process of tagging and organizing your favorite web pages), and aggregate all those selfish actions in a way that provides value for the community (discovery of new web sites based on the tags assigned by other users.)

The biggest supporters of delicious would say that this process of web site and web page discovery based on thousands of aggregated human actions and categorizations is a legitimate rival for Google-like algorithmic search.

11:35 pm on Dec 10, 2005 (gmt 0)

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Could someone please give me a quick run down of how the average user would use del.icio.us? I've read their tagline and looked through the site and yeah - I do'nt get it. I can "tag" my favorite links and stuff. Umm ... and?

Is this just about the typical 13 year-old's needs for self-expression and self discovery? Or is there some signficance beyond that? Maybe I'm too stuck in the concrete World of functionality that I'm missing a cultural signficiance? Or is there actually notable functionality here that I'm missing?

11:42 pm on Dec 10, 2005 (gmt 0)

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To stay off topic (like most of the posts), MySpace is very important for Music - just about every band I have reviewed over the last two years is on there. It was originally set up for music and even me at 46 years old finds it exciting. The Web 2.0 thing has developed on top of the music just by providing ways for people to send mail and comments.

As for del.icio.us - it doesn't seem to provide anything that furl doesn't apart from a promotion of Podcasts. Storing/sharing favourites is hardly revolutionary.

11:56 pm on Dec 10, 2005 (gmt 0)

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Here's how I use it to keep track of interesting pages:

I have a firefox extension that lets me add any page to my del. bookmarks.

The tool lets you add keywords / tags - so if I was tagging this thread, I might use the keywords "web2.0, acquistions, valuations, etc.). Now this thread is organized according to those concepts, and is easily findable for quick reference.

From a discovery perspective, here's how I use it:

I go to Delicious/Popular - which is now on the front page, and i click on the tags that I'm interested in - web2.0, social, internet, etc. - this allows me to find pages that other people are tagging with the terms i'm interested in.

Unlike a search engine, the results are always fresh, and always changing... you can find some good stuff this way. It's kind of like other people are doing the searching for you...

3:33 am on Dec 11, 2005 (gmt 0)

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It's kind of like other people are doing the searching for you...

Yeah, in a way it's like Google's zeitgeist in real time with all the details...

Zeitgeist is so "dumbed down" it's almost useless but it is still very popular because it taps into the culture. Search engines keep this detailed data proprietary, tag engines create value by making it public. I guess that's why it's 2.0.

12:02 am on Dec 12, 2005 (gmt 0)

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Could someone please give me a quick run down of how the average user would use del.icio.us?

As a bookmarking tool;). Seriously - has your computer crapped out, or has it shut down while mozilla was open(It wipes your bookmark file clean) or been on another computer? Its definitely not for bookmarking your balance page on your online bank, but for most other links I find it extremely useful. Too bad it'll probably be spammed to death in no time - there's probably someone here who's figured it out by now:).

12:25 am on Dec 12, 2005 (gmt 0)

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