Yahoo Spent $163 Million In Cash On Acquisitions In Q3, Down 84% From Its Tumblr’d Q2

▤ Summary

In the third quarter, Yahoo purchased eight companies, including Lexity, Rockmelt, and Xobni. According to its earnings release, the net cash impact on those purchases totalled $163 million. This doesn’t give us the full picture of the total cost of Yahoo purchases, given that the company could also employ stock as well as cash to make acquisitions. Unless Yahoo bought exceptionally cash-rich companies – not likely, frankly – then it appears to have used far more of its own stock as bargaining chip than cash to purchase the smaller firms. That, tied to its forthcoming massive Alibaba check, and Yahoo is more than sufficiently capitalized to keep on buying if it wants to.

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