As Yahoo gains focus, who will it acquire next?


Months after handing over search operations to Microsoft, Yahoo is often criticized for being in the midst of an identity crises.

However, the company's strategy has been crystalizing recently as a content-first company with the goal of getting as many eyeballs on its pages through originally produced content. Since taking over as CEO, Carol Bartz has unloaded distracting Yahoo divisions such as Yahoo Personals while snapping up assets to help ramp up site's original content.

Last month, the company snapped up 380,000 long-tail content creators when it purchased Associated Content for around $100 million. According to Alan Mutter, the company will likely roll out AC’s resources to cover local news.

Today, the company also announced a partnership with Facebook, deeply integrating the site’s news feed by connecting Yahoo IDs with Facebook profiles and there are rumors that the company is considering purchasing Huffington Post.

So now that it Yahoo is beginning to form a coherent plan for the future, we can speculate on what other content creation sites are ripe for the acquiring.

Possible other partners:

If the company's purchase-happy history is any indication, Yahoo is still on the lookout for other partners. Here are a few that would make the most sense:

Yelp – Though the company turned down (or was turned down, depending on who you believe) a $500 million acquisition offer from Google,Yelp is the dominent local media company on the Web. The site, which relies mostly on user generated reviews, has built up a massive database on local restaurants and businesses, each tagged with scores of metadeta. Yelp, along with the Associated Content purchase, would be an easy way to shore up local content while bringing Yahoo Maps back from the dead.

Foursquare – Yahoo has reportedly been courting Foursquare, the mobile check in service. Currently, Yahoo has no horse in the geolocation race, and a Foursquare purchase would launch the company to head of the class. Yahoo could also leverage Foursquare’s “tips” feature with its existing content and use Foursquare’s location data to augment its advertising data. Since the Foursquare rumors, the company has purchased Koprol, an Indonesian Foursquare clone. 

SB Nation – Yahoo already has a content partnership with this rapidly expanding sports blog network, so why not make it official? 

Glam Media – The magazine-like blog network has the advertising technology and wide reach that would appeal to Yahoo’s latest strategy. Just one problem, though: Glam signed a partnership with AOL in 2005.

Advertising technology - Yahoo should be looking at purchasing startups to sure up its advertising technology, expecialy in the wake of Google's recent acquisition binge which include companies like AdMob and Invite Media. 

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