Yahoo announced early Tuesday afternoon that its has purchased video chat company OnTheAir, another deal headed by radical new CEO Marissa Mayer. The deal will see the company attempt to compete directly with Google Hangout.
According to Reuters, Yahoo was up in trading today by 1.5 percent bringing the share price to $18.82.
The details of the deal have not been released by Yahoo, just that OnTheAir's team would be joining Yahoo.
Currently OnTheAir's product allows users to hold live video conversations, it was only launched in March 2012.
So this is the second time since Marissa Mayer took over as CEO of Yahoo that they have gone into the small mobile market and acquired a start-up. Two months ago, Stamped, was purchased by Yahoo, which is a Yelp style app that saw users share info about restaurants on their mobile devices.
OnTheAir ecstatically announced the news via their own website saying:
OnTheAir is Joining Forces with Yahoo!
Friends of OnTheAir,
We are excited to share some big news: OnTheAir has been acquired by Yahoo!.
When we started OnTheAir, we had dreams of building a company that made a difference in the daily lives of millions. Our pursuit was challenging: We put in late nights together. We debated intensely. We worked like crazy to build a product we were proud to put our name on.
Despite the challenges, our experience has been a rewarding one. We got to launch multiple products to a wonderful community. We were coached and mentored by some of the brightest investors and advisors in Technology (see our list below and work with them if you ever get the chance!). Most importantly, we developed deep bonds as a team and learned how to work together as a unit.
While we haven’t yet attained our dream of building a widespread daily use product, we are just as committed to it. And this is why we’re so excited to be joining Yahoo!. When we first met with the team at Yahoo!, it was clear that everybody there is committed to making mobile products the backbone for the world’s daily habits. All in all, it’s a fascinating time to be joining Yahoo!. There’s a tremendous amount of energy in the company. There are big things to be done and great products to be built, and we’re thrilled to be a part of it.
We want to conclude this letter with a word of gratitude. Thank you to all of our customers, team members, mentors, advisors, investors, consultants, friends, and family for being a special part of OnTheAir. Building a company is no easy task, and we realize we wouldn’t be anywhere without your support.
The OnTheAir Team
Abel, Dan, Erik, Josh, and Mike
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