You heard it here first folks, that Technorati is a prime target for purchase by Yahoo. From the Blog Herald predictions for 2006:
“1. Technorati will be bought
Now that Technorati works again, it’€™s a prime candidate to be purchased by a big media company, and the perfect fit would be Yahoo, fitting nicely alongside its recent purchases of ‘€œWeb 2.0’€³ companies such as Flickr.”
When Will Yahoo Acquire Technorati?
I believe that Yahoo should, and even may, acquire Technorati in the near future.
First of all, Yahoo has already acquired the ‘€œfraternal twins’€? of tagging – Flickr and Del.icio.us. Both were pioneers in their respective markets, and relatively cheap ($20 – $30 million each). Flickr made tagging of pictures popular; Del.icio.us did the same with bookmarks.
But Flickr and Del.icio.us are not twins. They are tagging triplets along with Technorati, which created and popularized blog tagging in 2005. Today, the majority of blogs use tags and categories to label their posts.
Second, Technorati should be just about out of money. They raised $6.5 million in the summer of 2004 from Draper Fisher Jurvetson, Mobius Venture Capital and August Capital. If they’€™ve raised more since then it has not been announced (or leaked). I know of a few unannounced financings, but I have not heard anything about Technorati raising additional venture capital. Technorati may need money.