Yahoo has acquired CommonStock, a broker-agnostic social and community-based platform that drives insights for retail investors. The acquisition advances the power of community for Yahoo Finance. According to Yahoo, it will accelerate its brand’s strategy to deliver retail investing resources, solutions and experiences to investors of all skill sets and levels.
“Our vision is to be the premier singular destination for all customer’s financial needs,” said Tapan Bhat, President, Yahoo Finance. “Our platform caters to every stage of the investment process. That is from providing pre-trade market news and analysis, facilitating engaging pre- and post- trade conversations within our community of like-minded investors, to offering effective self-directed portfolio management tools and insights. Acquiring CommonStock reinforces this vision. “The CommonStock team has built a trusted community, sharing high-quality insights and knowledge that help everyday investors create wealth. Yahoo and CommonStock will further empower investors of all skills and levels through a one-stop shop for smart financial decisions.”
Why it matters
This is a significant deal for Yahoo and its first under the Yahoo Finance brand since it was bought by Apollo Global Management in 2021. Yahoo has since focussed on four core markets: news, sports, finance and mail. Launched in 2020, CommonStock has emerged as a popular platform for retail investors. It has more than $10bn in connected assets. The platform enables users to link their brokerage accounts, share their portfolio’s performance, and discuss their trades and strategies. Its real-time alerts notify users when friends make trades. It encourages the exchange of investment strategies and fosters a collaborative investment environment. Yahoo says that CommonStock will enhance the unique capabilities of Yahoo Finance. Home to one of the largest and most active financial communities on the web, it has over 150 million global monthly users.
“Joining Yahoo Finance is a tremendous opportunity to build community and products on the largest consumer finance stage, which will positively impact millions of loyal users,” said David McDonough, CEO and founder of CommonStock. “For me, it’s personal. Yahoo Finance changed my career trajectory during the financial crisis over a decade ago. I was able to teach myself about the stock market and learned from other investors on the Yahoo Finance message boards. The unique blend of Yahoo’s reach and CommonStock’s expertise in creating retail investment communities is an incredibly powerful combination. This acquisition will allow us to accelerate our mission at scale.”
Commonstock investors include Coatue, QED, Floodgate, Upside Ventures, Resolute Ventures, and Abstract Ventures. Terms of the Yahoo deal were not disclosed. CommonStock employees will transfer to Yahoo Finance following the deal.
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