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Wednesday, 05 December 2012 10:51

Yahoo buys video chat company

Written by Nick Farrell



No-one else has that sort of technology


Yahoo has written a cheque for a five-person video chat company OnTheAir.

It is the second deal by new Chief Executive Marissa Mayer to improve Yahoo's mobile capabilities and match offerings from Google and Microsoft. Yahoo did not disclose the financial terms of its acquisition of OnTheAir, but said the team would be joining Yahoo's mobile group.

Yahoo does not want to offer OnTheAir's existing product, which lets Web users host live video conversations. It is the second small, mobile-oriented deal since Mayer became CEO earlier this year. In October, Yahoo she bought Stamped a mobile startup that allows consumers to share information about favorite restaurants and music on their smartphones.

Mayer has said that her top priority is to create a mobile strategy for Yahoo and that she intends for at least half of the company's technical workforce to be working on mobile products.

Nick Farrell

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