Yahoo plans to invest $20 million dollars in the mobile messaging app, Snapchat. Recently, Yahoo has made more than $9bn when it sold part of its stake in Alibaba, which it purchased earlier for approximately $1bn. In addition to investing in Snapchat, Yahoo has purchased many other startup companies and other online service companies. According to the article, this is an attempt by Yahoo’s CEO to transition from “…its reliance on search and make it more of a content provider.”

In my opinion, this is a smart move by part of Yahoo’s CEO  Marissa Mayer. In this era of transient advantages, Yahoo is paving its way for future in other “arenas”. Rather than competing with Bing and Google on the search engine industry, Yahoo sets itself apart by offering services in other “arenas”.

Reference:

http://online.wsj.com/articles/yahoo-nears-investment-in-snapchat-1412361684

http://www.bbc.com/news/technology-29502069