Yahoo buys del.icio.us

Filed in archive Venture Capital on December 9, 2005

Yahoo snaps up del.icio.us - Om Malik has a great overview of sources about the deal:

"Yahoo continues with its Web 2.0 makeover. The company snapped
up the bookmarking service del.icio.us today, according to a post by founder Joshua Schachter on his website. "We look forward to bringing you new features and more servers in the future," he writes. (Scale matters!) Jeremy gives Yahoo's take!

Of course, there is that whole Digg phenomenon, and emergence of newer competitors such as TailRank. What could be the price of this deal? The company had raised $1.3 million, and if that got the VCs around 25% of the company, my guess is the final price is between - $10 and $15 million. I am speculating here, and have no information. So treat it like that.... simple speculation."

Union Square Ventures and BV Capital both invested in April into the company. My guess would be around $10 million in Valuation - still a great exit for a company with no real revenue model.

Amazing!

Thanks Robyn for the hint!