James Perrin

Are the YouTube Founders the right People for Delicious?

28th Apr 2011 Social Media 2 minutes to read

The Social bookmaking site, Delicious, has been acquired by YouTube Founders Chad Hurley and Steve Chen. After being sold by Yahoo last month for a supposed $1 million, Delicious has moved on from Yahoo and is now in the hands of Avos. But are these the right men to take Delicious forward?

The news was announced on Delicious’ blog and in a press release from Avos yesterday that Hurley and Chen have acquired the site for an unreported fee. Hurley and Chen were the masterminds behind Youtube, the largest online video platform, which was sold to Google in 2006 for a reported $1.76 billion.

Providing an insight into how Delicious will be handed over, the blog reveals that Yahoo will continue to operate until around July 2011 when it will be passed onto the new owners. In order for a seamless transition, users will be asked by Delicious if Yahoo can transfer their bookmarks over to the new owners starting from today.

It appears Yahoo wanted to make sure that Delicious was placed in good hands, as they still believe it to be a precious and much loved service, despite it not being within their strategic fit. John Matheny, senior vice-president of Communications and Communities at Yahoo explains that a number of bidders came forward but the duo were chosen “based on their passion and unique vision for Delicious”.

Yahoo have found themselves in the middle of a fire sale, or as it has been dubbed ‘Sunset sale’ [See: Yahoo’s ‘Sunset’ Sale Begins]and Delicious was one of many services outlined for the chop. It’s difficult to know exactly how Delicious will move forward. Yahoo acquired the social bookmarking for service for an estimated $30 million and ended up selling it for a figure rumoured to be around $1 million. They were not able to figure out exactly how to monetise the service or even develop it into social search.

With the founders of the largest online video platform on board, will Delicious develop into something much bigger? Well according to their blog, they feel the service is now in the right hands, “they have firsthand experience enabling millions of users to share their experiences with the world. They are committed to running and improving Delicious going forward.”

Whilst it appears that Yahoo overvalued the service dramatically when the purchased it for $30 million, it’s difficult to understand whether Delicious’ ill fated time there was due to its own limitations or the creative limitations of Yahoo.

How will the dynamic duo turn Delicious around? Will it just become another web news service like Reddit or Digg? Well, according to the Press Release, “Their vision for Delicious is to continue to provide the same great service users love and to make the site even easier and more fun to save, share, and discover the web’s ‘tastiest’ content.” With that in mind, I guess only time will tell.

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