Yahoo! Inc. (NASDAQ:YHOO) has wasted little time in spending some of the excess cash generated from their lucrative holdings in Alibaba Group Holding Ltd (NYSE:BABA). As reported by The Economic Times, the tech giant has added Bangalore, India-based startup Bookpad into their fold, purchasing the company behind the Google Docs competitor Docspad for $8.3 million.
In Docspad, Yahoo! Inc. (NASDAQ:YHOO) nabs a document-viewing and editing app that is gaining traction in the business world, and was sought after by other firms like Autodesk and Dropbox. The program and app allow the easy sharing, annotating, and editing of a variety of documents in real time, directly from within the cloud, without the need for any downloads or other installed plugins. Docspad can easily be integrated into a variety of services as well, which likely proved the biggest selling point for Yahoo! Inc. (NASDAQ:YHOO).
The purchase is another inspiring development for the Indian tech startup scene, with Bookpad going from conception under the Startup Warehouse programme to purchase by one of the largest tech companies in the world in just one year. They follow in the footsteps of Little Eye Labs, another Bangalore-based startup which was purchased at the start of the year, by Facebook Inc (NASDAQ:FB). The 6-person Bookpad team, including the three founders, will reportedly all make the move to Silicon Valley now as part of the deal.
Despite the timing of the purchase shortly after the Alibaba Group Holding Ltd (NYSE:BABA) IPO, it’s ultimately just another day at the office for Yahoo! Inc. (NASDAQ:YHOO), which has been aggressive in acquiring companies under CEO Marissa Mayer. It’s reported that talks began between Yahoo! Inc. (NASDAQ:YHOO) and Bookpad beginning in May.
Regardless, the cash infusion from the record-setting IPO will undoubtedly give Yahoo! Inc. (NASDAQ:YHOO) yet more freedom to aggressively pursue companies, even as they become a potential target themselves in the face of a stock at below-core value and boatloads of cash. Mayer has said approximately half the cash from the IPO would be returned to shareholders in the form of dividends and stock buybacks, while the rest could be used for acquisitions.
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