YouTube founders swoop in and buy Delicious from Yahoo

Delicious' future had been in question for several months, after Yahoo said it didn't fit in with its current strategy

Delicious, the social bookmarking service and Web 2.0 pioneer, will live on as part of a new Internet company run by YouTube founders Chad Hurley and Steve Chen.

Delicious, whose future had been in question since Yahoo announced its intention to divest itself of it last year, will become part of Avos, a new company Hurley and Chen have launched.

The YouTube founders plan to make Delicious "easier and more fun" as well as sharpen its ability to help users manage information overload, Avos and Yahoo said on Wednesday.

"Entrepreneurs focused solely on Delicious will probably be able to revive and further develop the site, which was well-loved by users but neglected by Yahoo," said industry analyst Greg Sterling from Sterling Market Intelligence.

Delicious, founded in 2003 by Joshua Schachter, who is no longer involved with it, helped usher in the Web 2.0 era of online applications, along with Flickr, which Yahoo also acquired, and others.

Delicious lets users save, share, tag and annotate website links, providing a next-generation, cloud-based approach to the traditional storing of bookmarks within Web browsers locally in PCs.

Yahoo acquired it in 2005 and indicated last year that it was seeking buyers for the social bookmarking service after deciding that it didn't fit in with the company's current strategy.

There will be a transition period for Delicious as it moves to its new home, but bookmarks will be maintained. Delicious users will get a chance to open new accounts with Avos.

YouTube, founded in 2005, is another example of a successful Web 2.0 online application, designed to let people upload, share, tag and comment on videos. Google bought YouTube in 2006 and it has been for years the most popular video website in the world.

"It's interesting that Chen and Hurley may be building a product -- although it's not search -- that ultimately indirectly competes with their former boss Google," Sterling said via e-mail.

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Tags business issuesInternet-based applications and servicesYahooMergers / acquisitionssocial networkingsocial mediainternet

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Juan Carlos Perez

IDG News Service
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