Blink bought out by Yahoo

<p>Yahoo has snapped up mobile chat app Blink.</p>

The makers of a mobile phone app that allows users to chat to each other and then destroy the messages have confirmed the sale of the business to Yahoo.

Blink will therefore be wound down over the course of the next few weeks, as the key reason for the takeover has been so Yahoo can acquire the talent behind the app.

The creators of Blink are to join Yahoo's team that works on "smart communication" products and the members of staff moving over includes ex-Google employees Kevin Stephens and Michelle Norgan.

In a statement posted on the Blink website, the creators stated that they "look forward to the possibilities that will come from bringing the Blink vision to Yahoo". They added: "We built Blink because we believe everyone should be free to show the same honesty and spontaneity in their online conversations as they can in person."

Acquisitions

Over the course of the last two years, Yahoo has increasingly been snapping up a range of exciting new start-ups, with commentators speculating this is to improve the level of talent employed within its ranks.

Yahoo has also made a number of controversial decisions since the appointment of chief executive Marissa Mayer, who announced she no longer wants members of staff to work from home, even though she has a creche for her own children in her office.

Self-destruct apps have been increasingly popular in the last 12 months in the wake of the NSA spying scandal, which revealed spies in the US have been intercepting emails, text messages and voicemails on a massive scale.

Snapchat, which allows users to send photos that self-destruct after a certain number of seconds, has been the subject of a massive takeover bid, but the company has so far resisted any attempt to buy the business.

Following the news of the Blink purchase, shares in Yahoo slipped back by 0.15 per cent during yesterday's trading session on the Nasdaq, while stocks in the firm were flat in after-hours trade.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.