Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Yahoo sells Delicious to YouTube founders

YouTube founders Chad Hurley and Steve Chen are buying Delicious from Yahoo.YouTube founders Chad Hurley and Steve Chen are buying Delicious from Yahoo. By Laurie Segall, staff reporter


NEW YORK (CNNMoney) -- After months of limbo, the fate of Web bookmarking service Delicious has been decided: YouTube founders Chad Hurley and Steve Chen are buying it from Yahoo.

It will become part of their new Internet company, AVOS. Financial terms of the deal were not disclosed.

"As creators of the largest online video platform, they have firsthand experience enabling millions of users to share their experiences with the world," Delicious wrote in a blog post on Wednesday announcing the deal. "They are committed to running and improving Delicious going forward."

In December, a leaked screenshot of an internal webcast by Yahoo Chief Product Officer Blake Irving displayed Delicious as one of many products slated for "sunset."

The site's operators immediately announced plans to explore a variety of options outside of Yahoo, which bought Delicious in 2005.

"While we have determined that there is not a strategic fit at Yahoo, we believe there is an ideal home for Delicious," the company said on its blog after the leak.

Although the bookmarking site, which launched in 2003, has a cult fanbase, Internet traffic tracker Compete has shown a steady decline in traffic over the last seven months.

But that might be turning around.

In March, the site saw its first increase in unique visits since July 2010. Around 567,000 unique users visited Delicious in March, up from 504,000 in February.

Yahoo (YHOO, Fortune 500) will continue to operate the service until July 2011, when it will officially transfer to AVOS.

"We wanted to find a home for the product where it can receive more love and attention. We think AVOS is that place," Delicious wrote on its blogTo top of page

Index Last Change % Change
Dow 18,441.01 -15.34 -0.08%
Nasdaq 5,166.34 11.36 0.22%
S&P 500 2,175.00 4.94 0.23%
Treasuries 1.48 -0.04 -2.38%
Data as of 2:10pm ET
Company Price Change % Change
Ford Motor Co 12.71 0.00 0.00%
Bank of America Corp... 14.56 -0.12 -0.85%
Facebook Inc 124.92 -0.08 -0.06%
Chesapeake Energy Co... 5.34 0.15 2.89%
Regions Financial Co... 9.20 0.04 0.49%
Data as of 1:55pm ET
Sponsors

Sections

ExxonMobil hasn't made this little money since 1999. It's a sign of how even the biggest oil companies are grappling with the new world of cheap oil. More

Hillary Clinton woke up Friday to bad news: the U.S. economy is slowing. It could make it harder for her to win in November. More

Sheryl Sandberg says she supports Hillary Clinton for president, because she would help close the gender gap, and because she's 'the most qualified candidate.' More

It's about to get harder for some luxury all-cash home buyers to hide their identity from the U.S. government. More