Yahoo Buying Xoopit for $20M?
Yahoo, the No. 1 email company, is rumored to be buying San Francisco-based startup Xoopit for about $20 million. While the Wall Street Journal says that negotiations are continuing, Kara Swisher says itÃ¢â‚¬â„¢s a done deal. The company has raised about $6.5 million from investors such as Accel Partners and Foundation Capital.
The exit price tells us two things: When it comes to buying startups, we are firmly in a buyerÃ¢â‚¬â„¢s market. And secondly, Xoopit has struggled to overcome its big challenge, that of getting more subscribers. That said, getting acquired by Yahoo would be an amazing achievement for the Xoopit team, whom IÃ¢â‚¬â„¢ve gotten to know pretty closely.
Read more: gigaom.com