March 11, 2011, 3:38 PM — Less than three months after reports that troubled Internet pioneer Yahoo intended to sell its Delicious bookmarking service, The Next Web on Friday said it has been told by a "reliable and proven source" that Delicious has been sold for more than $5 million.
From The Next Web:
After a heated bidding process, the site has reportedly been sold to a rival bookmarking service – who exactly we’re unsure of but we’ll update once we have confirmation. We do know its been sold to an existing competitor with (a) “strong user base.”
Yahoo told The Next Web that it doesn't comment on rumor or speculation, so there's no confirmation yet.
But at a $5 million selling price, Yahoo would be taking a big loss on Delicious. The company bought the bookmarking service from founder Joshua Schachter in 2005 for $18 million. Worse, it never monetized the service in any way.
Yahoo really shot itself in the foot with this one. Delicious showed up on a list leaked last December of sites Yahoo planned to phase out, with the company essentially saying that the bookmarking service had no strategic value. Way to stoke demand!
Chris Nerney writes about the business side of technology market strategies and trends, legal issues, leadership changes, mergers, venture capital, IPOs and technology stocks. Follow him on Twitter @ChrisNerney.