Yahoo has acquired a video chat start-up OnTheAir as the company focuses on mobile applications and services. Financial terms were not disclosed.
The planned acquisition is the latest for Yahoo in the mobile market, a key area targeted by new CEO Marissa Mayer.
"When we first met with the team at Yahoo!, it was clear that everybody there is committed to making mobile products the backbone for the world's daily habits," OnTheAir team made the an announcement on their website.
According to Reuters, the small, five-person startup firm was launched in March, and allows users to host video conversations in a "television talk show" setting, where members of a group can be called "on stage" by a host while being watched by anyone with a video stream.
The new acquisition could help Yahoo compete with Google Hangouts or build mobile communication apps.
This is the second acquisition by the company. Yahoo acquired in October a recommendations app called Stamped. The iPhone app that lets people keep track off and recommend things like restaurants and books - will, however, be discontinued by the end of this year, and users have been advised to download their data from the website.
OnTheAir executives, in a statement, said they were "excited" to join Yahoo and help them attain their "dream of building a widespread daily product."
