Xoopit sets the model

How can a small startup keeps the ambitions and finally sell the business in millions or more? Xoopit gives us a good answer.

The Xoopit technology searches files, photos and videos floating in users' Yahoo Mail and Google Gmail clouds and lets users post this content on other social networks and blogs. The software imports media from photo- and video-sharing networks such as YouTube, Flickr, Kodak, Shutterfly and Picasa. It seems that this service is just compatibility+a UI system.

On July 22, Yahoo confirmed its acquisition of Xoopit.

While Xoopit was free, CEO and co-founder Bijan Marashi told eWEEK last year he expected the company would place paid ads on the service, which is something that Yahoo will certainly try to do. Yahoo is already keen on improving ad sales on its home page with its clever My Favorites application feed section.

Bryan Lamkin, senior vice president of Yahoo Applications, explained the value Yahoo users will get from the Xoopit buy:

"Xoopit will bring phenomenal photo organization, improved photo sharing and the serendipity of discovering forgotten photos to Yahoo! Mail. Why is this such a big deal? Yahoo! Mail is actually home to one of the largest online photo repositories in the world. And every day, millions of you use Yahoo! Mail as your primary way to share the photos of important moments in your lives. While social networks and community sites are great for sharing photos with everyone you know, we realize it¡¯s not for everyone or every occasion. For many, e-mail is still best for sharing photos among a more select group of friends or family. And now we're making it all that much easier for you."

Xoopit began life as a Gmail and iGoogle plug-in for Firefox before it began working with Yahoo Mail last year, but Lamkin said Yahoo will continue to support the Xoopit Firefox plug-in.

The Xoopit buy is the second piece of major news to have leaked from Yahoo this week, with AllThingsDigital and the Wall Street Journal reporting the buy plans just one day after the Wall Street Journal broke the news that the company was planning an opt-in beta test of its new home page.

If the pattern holds, Yahoo should be reporting a major search and online ad deal with Microsoft soon. Last week, AllThingsDigital and 24/7 Wall Street reported that Yahoo and Microsoft were working on a multibillion-dollar deal in which Microsoft would pay Yahoo to run its ads on Yahoo's search engine.