Yahoo recently announced the acquisition of fashion shopping site Polyvore Inc. in a deal worth around $200m including $40m in retention payments, according to sources familiar with the matter. Yahoo CEO Marissa Mayer slowed down the company’s acquisitions strategy this year. Polyvore is the first deal since December 2014.
Polyvore has a popular mobile app
In a press release, the company confirmed that Polyvore would enhance Yahoo’s digital portfolio, including its magazine and verticals. The companies are to increase native shopping ads to drive traffic and sales towards the retailer. The deal offers Yahoo content as well as a mobile app to serve ads to through Gemini.
Polyvore allows customers to create and curate their own fashion, beauty and lifestyle collections. People can browse collections and arrange items according to their taste to share with friends and other users, helping the site to continuously produce tons of content that advertisers are keen to tap into. Polyvore brings on board its own native ad model and relationships with over 350 retailers. According to Comscore, the site’s mobile app visitors rose by 36% in June compared to the year-over.
Simon Khalaf, SVP of Publisher Products, Yahoo said:
“Polyvore has built an excellent team, a category leading product, and a strong business based on a highly engaged community. The combination of Yahoo’s industry-leading digital content with Polyvore’s expertise in community and commerce has outstanding potential. We are thrilled to have the Polyvore team join us.”
The Polyvore team will continue to operate as normal and soon join Yahoo offices in Sunnyvale, San Francisco and New York.