Yahoo has been a prominent player in the news industry for an extended period. Now, it is strengthening its position through an acquisition.
The agreement for Yahoo to acquire the AI news startup Artifact has been officially confirmed by both companies. Specific details of the deal were not disclosed, but it was clarified that Yahoo acquired only Artifact’s underlying technology, with all of Artifact’s employees having already transitioned to new roles.
Artifact, a forward-thinking news startup established by Instagram co-founders Mike Krieger and Kevin Systrom, utilized AI to provide personalized content and categories based on users’ news consumption patterns. Despite gaining some traction, the startup fell short of the founders’ ambitious goals, leading to the closure of the business in January.
In a Medium post, Krieger and Systrom expressed their realization that the market opportunity did not justify further investment in the venture. This decision disappointed many Artifact users who had grown accustomed to the app’s AI-driven approach in delivering relevant stories.
Following the shutdown of Artifact, potential buyers expressed interest in acquiring the company. Ultimately, Yahoo emerged as the most suitable candidate, according to discussions with the co-founders as reported by The Verge.
Yahoo’s strategy involves integrating Artifact’s recommendation technology into Yahoo News, which boasts an impressive readership of 185 million monthly users. This integration aims to enhance content recommendations based on user engagement.
It is worth noting that Artifact will not remain a standalone app post-acquisition, requiring users seeking the Artifact experience to transition to Yahoo News.
While the acquisition presents a promising opportunity for both companies, uncertainties linger regarding the timeline for implementing the Artifact algorithm into Yahoo News and any potential modifications Yahoo might introduce to align the algorithm with its platform.
Nonetheless, this development marks a positive resurgence for the once-promising startup and, if executed effectively, holds the potential to significantly enhance Yahoo News’ content recommendation capabilities.
