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Yahoo continues its Acqui-hire gameplan with Bre. ad acquisition

Bre.ad is a URl Shortener company. If you haven’t heard of Bre.ad, you are hardly alone. Bre.ad is one of the many companies that would take your long URL and shorten it. This is hardly a revolutionary business model. There are many link shortener companies, the most common of course is Bit. ly. Before Bit.ly is Tiny URl and a host of other URL shortener companies. The whole business model of URl shortening is fairly straightforward. In exchange for you shortening your URL, whoever clicks the shortened URL will see an interstitial ad. It means that they go to a midway ad, which is usually at the top of the actual website, that frame on the website whose URL you shorten. On paper this creates a win-win situation. You are able to spread your link much further, faster and wider because it is less bulky and the URL shortener company gets an ad impression.

Bre.ad is a company that enters the space in a fairly small team of people and was funded for $3.5 million. It is only two and a half years old and the model is fairly straightforward just like a typical URL shortening outfit like Adfly. The service was founded by Allan Chan. Well it looks like Yahoo has continued its Acqui-hire campaign by basically buying out Bre.ad. It has been rumored that it has been shopping itself around because it is running short of money. The small team was composed of ten employees and it looks like Yahoo will be hiring 6 engineers and product managers. This means that four people will be out of job, assuming that those four people weren’t let go earlier. Based on the details released about this deal, it is clear that this is another Acqui-hire approach by Acqui-hire movement of Google. In other words it looks like an acquisition but it really is just Google hiring new people. Bre.ad brings an interesting mix of skill sets to the table. First of all, it has advertising proficiencies and product management proficiencies in addition to their engineering proficiencies.

Overall it may be a good deal depending on how much Yahoo paid for this outfit. Since Bre.ad raised $3.5 million that is probably a good place to start in terms of multiples if you’re trying to guess how much deal was worth.

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