Yahoo is moving into FinTech as Yahoo Finance acquires social investing platform Commonstock 🤑; Mastercard to end crypto-to-fiat card partnership with Binance 👀; Downrounds are the new norm 📉😭
FinTech is Eating the World, 25 August
Hey Everyone,
TGIF! What a week it was… 🤯 And it’s not over as today we’re looking at Yahoo, which is moving into FinTech (what’s the catch + why social investing could be a big thing), Mastercard that will soon end crypto-to-fiat card partnership with Binance (this is getting seriously worrying…), and downrounds that are the new norm now (bonus is priceless startup resources for those looking for funding). Let’s jump straight into the hot stuff 🌶
Yahoo is moving into FinTech as Yahoo Finance acquires social investing platform Commonstock 🤑
The deal 🤝 Yahoo, a global online giant renowned for its diverse portfolio of iconic products, has made a strategic move by acquiring Commonstock.
It’s a social platform that lets retail investors link their brokerage accounts share their portfolio's performance and discuss their trades and strategies. Terms of the deal were not disclosed.
This is arguably the first FinTech move by Yahoo, so let’s take a closer look.
More on this 👉 Launched in 2020, the Commonstock app acts as a social layer on top of existing brokerages. Users link their brokerage accounts and share their real-time portfolio (by percent, not dollar amounts), performance, and trades.
Users get real-time alerts when friends buy or sell and can carry out discussions about investment strategies.
The firm, which raised $25 million in 2021 and now has more than $10 billion in connected assets, becomes part of Yahoo Finance, which has over 150 million global monthly users.
✈️ THE TAKEAWAY
What’s next? 🤔 This deal represents the first acquisition under the Yahoo Finance brand since Yahoo was bought by private equity firm Apollo Global Management in 2021. The outlet has long been a leader in market data, news, and analysis, both for professional and retail investors, and the latest acquisition builds on Yahoo's long-term strategy to transform Yahoo Finance into the premier, one-stop destination for retail investors. The potential next step could be transforming Yahoo Finance into a fully functioning social investment app. With its scale and reach, it could really compete with the likes of eToro, or new startups like Shares, or Lightyear. Why bother? Well, social investing could soon be kind of a big deal…
ICYMI: Shares nets $40M to make investing social 💸