Thought Yahoo’s acquisition spree would culminate with a $1.1 billion deal
for Tumblr? Nope, not so much. In fact, the buy-happy company just quietly made
its second acquisition in 24 hours — in two different markets, no less. Yes,
Yahoo followed this morning’s purchase of iOS photo app maker, GhostBird
Software, by making a play into the enterprise conference calling space. Wait,
what?
Yes, users of six-year-old free conference calling service, Rondee, were
tonight informed via email that the startup has been acquired by Yahoo for an
undisclosed sum. It will also suffer the same fate met by other recent Yahoo
acquisitions — like MileWise, Astrid, GoPollGo and Loki Studios to name just
four — in that it will soon be going the way of the dinosaur. After June 30th,
the company’s website now reads, users will no longer be allowed to access their
data or create new conference calls.
The startup will continue its progressive shut down from there, officially
closing operations on July 12th, before ultimately cutting off user access to
their calling data on July 30th, the startup said in an email to its customers
today. However, to avoid stranding its users completely on such short notice,
the company said that it’s arranging for “user Login ID and on-demand pins to
work with InstantConference,” a company (and, previously, a competitor) it
describes as a “highly reputable conference calling service.” Not sure that’s
much consolation. “Hey, we may be forcing you to leave … but at least the place
we’re sending you has electricity, right?”
What’s A Rondee
Rondee, for those who haven’t been following the crowded and congested
conference calling market, launched in 2007 on a mission to build the “Evite for
conference calls.” The startup set out to lower the barriers to entry in the
conference calling arena and make it accessible to the masses. Today, that means
it offers basic conference calling capabilities around the clock (for free) to
anyone with an email address.
Granted, for those looking to get “fancy” with call recording, like having
access to audio, custom tones, call directories and call scheduling, some
account setup is required. But that’s about it. Users can choose between free,
on-demand conference calling, or free, “Scheduled Rondees,” in which users can
pick a future date and time to schedule a conference call and let Rondee send
out email invitations to which invitees can respond to and use via the company’s
website. Straightforward, easy to use and free.
Of course, while those are traits every company should shoot for, the VoIP
market looks a little bit different than it did six years ago, becoming nearly
ubiquitous thanks to companies like Skype and Google, meanwhile, startups like
UberConference have moved onto free visual conference calling to compete with
Hangouts et al. Today, Rondee’s basic VoIP model sounds very familiar.
So Why Did Yahoo Just Buy This?
While Yahoo nor Rondee has yet to share any more details on the terms of
the deal or the motivation, we do know from a quick Google search (and a look at
its press page) that the startup has been pretty quiet of late. Sure, it’s
likely this wasn’t an exorbitantly expensive buy for Yahoo, but this also hasn’t
been an area of strength (or focus) for Yahoo for a long time, which starts to
make it seem like there isn’t really a good explanation for this one.
Maybe Yahoo wants to integrate Rondee into its internal conference
solution, for internal IT use, seeing as it’s cheaper than buying an enterprise
solution? Probably not.
What may be more likely (and hopefully will be the case) is that Yahoo
liked the team and was eager to make use of its talent, so Marissa Mayer pushed
Yahoo’s Acme Acqui-hire Button to the company fix Yahoo Messenger. Maybe? After
all, on its website, Rondee says that it will be joining Yahoo’s Small Business
Team, so while it may be a stretch, the motivation for this acquisition could
lie in the company’s messaging client.
Marissa Mayer has made talent acquisition one of her top priorities since
becoming CEO, and mostly her shopping spree has targeted mobile — in other
words, showing the company understands that its mobile strategy and products
have to evolve if Yahoo ever hopes to be truly relevant again. (And, really,
it’s probably a little late, but…)
Either way, Yahoo has already made a number of mobile acquisitions. Plus,
it’s easy to take a look at Yahoo’s product portfolio and sigh. Case in point:
People used to Yahoo Messenger as their go-to chat app. (Well, some people did,
somewhere. We’re still trying to find out who they are exactly.) But the point
is that Yahoo’s messaging client used to be enormous, and now it’s about as cool
as the Macarena. Meanwhile, sadly for Yahoo, gamified and chat-ified messaging
apps are all the rage and continue to proliferate, especially in emerging
markets. In some Upside Down World, this could mean that there’s still
opportunity here for Yahoo.
Though with Google’s assets, like gChat, Google Voice, Gmail and Hangouts,
just to name a few, Yahoo has a long way to go. A pretty long way. Sure, if
anyone knows how to get Yahoo up to speed using Google’s playbook, it’s Marissa
Mayer. But then there’s WhatsApp, iMessage, Viber and too many more to name.
Google launched free voice calling from Gmail nearly three years ago, doing the
same for Yahoo Mail and just copying the Google Roadmap — would be dangerous
and, well, just sad.
Or maybe not. Maybe Yahoo will use Rondee as part of a foundation on which
it will build a Hangouts competitor. Why the world needs that, of course, is
another question entirely — sorry, Yahoo Mail diehards.
These are a few possible explanations for Yahoo acquiring Rondee, though
I’m not sure they’re particularly satisfying. To this point, it’s worth reading
this post (really, lament) on Yahoo Messenger from Yahoo’s former director of
global tech initiatives. Marissa Mayer seems to be addressing some of the
friction he cites as contributing to Messenger’s downfall, a lot of which he
attributes to leadership and the lack of a unifying product vision, the latter
of which fittingly smacks of the very product strategy currently at work at the
Googs.
It’s a familiar tune at Yahoo, some of which appears very fixable. But
watching Marissa Mayer acquire all these startups that are on their last
lifeline or just keeping their head above water is a good way to bring in fresh
and (relatively) cheap talent, sure. And maybe she’s got the vision and is the
Great Unifier it sounds like Yahoo needs. In the end, perhaps it could be like
watching Tony Stark build his first Iron Man suit from spare parts and scrap
metal, or maybe it will just be like watching someone try to produce gold
bullion by painting a bunch of bricks yellow. (Complemented, of course, by the
sound of a sad trombone.)
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