How Yahoo Decides To Acquire
J Thoendell stashed this in Tech
Here's what she told Brainstorm attendees about her dealmaking:
She makes three kinds of acquisitions: talent, tech, and strategy. For an acqu-hire she looks at the "quality of the people." For a "tech" buy, she looks at how well the tech can integrate with Yahoo's existing tech. A strategy buy is considered "transformational," such as Yahoo's $1.1 billion purchase of Tumblr.
Except for a handful of big, publicly disclosed deals, all of the deals have been fairly small. "In the 10s and 20s," she said, referring to $10 million to $20 million. However, many of them are far smaller than that. From January-March, Yahoo bought five companies, and the total purchase price for these acquisitions was $23 million, it said.
Does that mean that Yahoo is low-balling its offers? Maybe.
"When we do a transaction, we make an offer. We care greatly about the success of team. If investors take the transaction, then they think the valuation is fair," she said.
The biggest factor in making an offer is if the culture and people are a good fit with Yahoo, she says.
Stashed in: Yahoo!
She's got a sense of humor!
Jacqueline Reses is chief development officer for Yahoo and is also the head of Yahoo's HR department.
Reses joined in September 2012, shortly after CEO Marissa Mayer took the helm. Mayer lured her away from a career as a private equity investor for Apax Partners.
Reses is not a typical corporate mouthpiece. On stage she was funny and irreverent. At one point, when asked to give a yes/no answer on if she thought competitor AOL would be acquired in the next two years, without missing a beat she joked, "Not by us."
The room laughed and the line went viral on Twitter.