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28 March 2024

Yahoo buys Arabic portal Maktoob

Yahoo and Maktoob officials declined to disclose the value of the deal. (AP)

Published
By Nancy Sudheer

Yahoo said yesterday it agreed to buy Arabic online portal Maktoob.com as it plans to add the Middle East to its expanding strategy for the emerging markets.

"This deal reinforces Yahoo's commitment to invest in emerging markets," said Keith Nilsson, Senior Vice- President of Emerging Markets for Yahoo

"With online user penetration and advertising penetration in its infancy, we see tremendous growth potential in this region," he said.

Yahoo and Maktoob officials declined to disclose the value of the deal.

"Yahoo will own Maktoob.com and Maktoob Research 100 per cent. Jabbar Internet Group will continue to be owned by the current investors," said Samih Toukan, founder of Maktoob.

"Yahoo is now interested in developing Arabic content and investment in developer community is essential.

We have done it in other parts of the world and will definitely want to push for local content," Nilsson told Emirates Business.

Yahoo already has a penetration of 600 million users in the emerging markets with 20 million users in the Gulf. Maktoob has 16 million users monthly in the region.

According to Ahmed Nassef, Vice-President and General Manager of Maktoob Group, there is immense potential in the North Africa, Egypt and Levant region with 45-50 million users and a y-o-y growth of 30 per cent. In terms of investment, Yahoo plans to utilise Maktoob resources.

At present, Maktoob has 200 employees in the portal business out of which a large member would be integrated into the new acquisition.

Following the acquisition, Maktoob.com will become a wholly-owned subsidiary of Yahoo. Ahmed Nassef, the current General Manager of Maktoob.com, will continue to lead the portal teams and will report to Nilsson. It is expected that the transaction will be completed in the fourth quarter of 2009.

"This acquisition will accelerate Yahoo's strategy of expanding in high-growth emerging markets," said Carol Bartz, Chief Executive Officer, Yahoo. "With the acquisition of Maktoob.com and our investment in the region, the Arab World will soon get a Yahoo experience in Arabic."

Maktoob.com is accessed by users in countries including the UAE, Jordan, Kuwait, Egypt and Saudi Arabia.

"Yahoo and Maktoob are natural partners and this combination should help energise the internet market in the region as a whole. We are excited about Yahoo building a stronger presence in the Middle East and bringing their compelling suite of services to Arab users in Arabic," said Toukan.

While internet usage in the Middle East has grown more than ten-fold since 2000, most markets are still in early stages of adoption.

According to the World Bank, there are more than 320 million Arabic speakers worldwide, while less than one per cent of all online content is in Arabic.

With Yahoo and Maktoob.com's combined audience and platform, advertisers will have access to the reach and sophisticated targeting capabilities they need to effectively engage with the region's online consumers. Spending on online advertising is expected to grow by 35-40 per cent this year in the region, according to Madar Research.

"Internet users in the Arab World will have access to Yahoo's vast content portfolio, as well as world-class communications products, which will be available in Arabic for the first time. In addition, advertisers will be able to leverage the vast reach of the newly combined audiences to effectively market to consumers across the region," said Nassef.

Nilsson said, "We see great growth potential in both audience and advertising and combining with Maktoob will allow us to quickly build our presence there with high quality products."

 

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