Yahoo Closes Acquisition of eGroups

Share this content:
Yahoo Inc., Santa Clara, CA, last week closed its acquisition of eGroups, a San Francisco-based host site for e-mail groups. The deal, first announced in June, seeks to provide Yahoo with a new communications vehicle for its users and the opportunity to pitch eGroups' 17 million members on additional Yahoo services.


In a statement announcing the deal's finalization, Yahoo said it would take a one-time, $25 million charge against third-quarter earnings for expenses related to the acquisition. Yahoo is exchanging about 3.4 million shares of its stock, or approximately $428 million, for all outstanding eGroups shares and options.


"We have successfully completed the acquisition of eGroups and are moving quickly to merge the company's popular e-mail group communications service into Yahoo's existing global communications platform," Jeff Mallett, Yahoo's president and chief operating officer, said in a prepared statement.


With this acquisition, Yahoo said it plans to integrate these group e-mail services throughout the Yahoo communications network, a vast collection of properties that include Yahoo Clubs, Yahoo Mail and Yahoo Messenger. The company claims to deliver more than 4 billion messages per month. Yahoo wants to enable its users to send and receive messages and alerts to desktop computers, pagers, personal digital assistants and cell phones.


Approximately 65 employees of eGroups are expected to join Yahoo and relocate to Yahoo's Santa Clara headquarters and various regional offices.
close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above