Dallas, Texas 05/23/2014 (FINANCIALSTRENDS) – Yahoo! Inc. (NASDAQ:YHOO) is believed to be in discussions to acquire a startup firm RayV, Inc. that is specialized in enhancing HD (High Definition) online video streaming. However, neither party was available for comment, reported Reuters.
Company Brief: RayV, Inc.
A Los Angeles based, RayV, Inc. also has a facility in Tel Aviv, Israel where it carries its research and development operations. Argoquest Holdings LLC,Accel Partners, Accrue Sports and Entertainment Ventures, Metamorphic Ventures and Dragon Ventures have investments in the company and hence it is valued at $40 million. The company basically offers a cloud based software over the web to manage and deliver enhanced HD quality video streaming to wireless gadgets as well as other mobile devices. The enhanced HD quality video that company offers is claimed to be superior to the likes of Netflix, Inc.(NASDAQ:NFLX)and Google Inc. (NASDAQ:GOOG)’s You Tube streaming services. This superior HD quality is attributed to RayV’s proprietary jamming management technology as well as superior signal strength.
The Strategic Advantage:
Yahoo! Inc. (NASDAQ:YHOO) is believed to launch a next generation video streaming website over the next few months which could be even larger than You Tube. This launch is believed to challenge Google’s domination in the global online video streaming services. However, Google is much ahead in the online video segment and is also believed to be in talks to acquire a live streaming site, Twitch which could aid You Tube to establish a strong foothold in the live-video streaming segment.
Yahoo!’s so-called acquisition of RayV could help it generate advertising revenue by strengthening its web video programming. In addition, the move could also help the company to expand its operations in Israel, where RayV is already having its presence.
On Thursday, the stock of Yahoo! Inc. (NASDAQ:YHOO) closed at $34.70, gaining almost 1% from its previous close. The stock traded with considerably lower volumes of 17.52 million shares as compared to its 30 day average trading volume of 25.09 million shares.