Internet portal giant Yahoo! Inc said Thursday that it will acquire browser developer Encompass Inc for $130m in a pooling of interests transaction. Atlanta-based Encompass markets a customizable shell browser designed to give consumers easy access to the web through a variety of internet service providers. As an alternative to Microsoft’s Internet Explorer or Netscape’s Navigator, Yahoo says the acquisition is consistent with its PC-, device-, and ISP-independent business model.
Encompass’ name surfaced last year in the Microsoft antitrust trial, as the software giant’s lawyers argued that the Encompass browser allowed OEMs to customize the look of IE, remove Microsoft branding and replace it with their own. รก
The Encompass software – which is either integrated into the start up screen of a new PC or bundled on CDs shipped by device and software manufacturers – is geared toward those looking for ease-of-use in browsing and email and offers a step-by-step tutorial. But browsing software may be an afterthought in the deal, as Yahoo says the acquisition really enables it to expand the business services it offers its strategic partners through the gathering of valuable marketing information.
During the registration process, Encompass provides the hardware, software or ISP partner with product registration services, allowing them access to detailed demographic information about their customers that may be used for follow-on marketing activities. Encompass has deals with PC and peripheral manufacturers and ISPs, including Acer Inc, Dell Computer Corp, Compaq Computer Corp, Diamond Multimedia Inc, Hewlett-Packard Co, Micron Electronics Inc, Sony Corp, AT&T Corp, and Earthlink Network Inc.
Yahoo says the deal is a boost to its Fusion Marketing Online program in which it designs integrated marketing programs for its merchant and advertising clients. The FMO initiative attempts to leverage Yahoo’s traffic and database of more than 47 million unique user registrations to provide customized marketing tools for clients. The theory is that Encompass’ registered users, most of whom have recently purchased a PC, are eager to explore a variety of content and services on the web and thus are a highly desirable demographic for Yahoo’s partners.
The acquisition follows a year-long relationship between the two companies marked by distribution agreements that made MyYahoo! the default home page for users of the Encompass software. The two say that, combined, Yahoo and Encompass’ services are distributed in partnership with eight of the world’s 10 largest PC providers.
