Yahoo buys video chat startup OnTheAir

Jon Swartz, USA TODAY | USATODAY

SAN FRANCISCO -- Yahoo just snapped up video-chat startup OnTheAir, with Google+ Hangouts and other similar services in its sights. 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.

Last month, Yahoo picked up smartphone app maker Stamped in what some analysts deemed an "acqui-hire" of talent. Under such an arrangement, the personnel from a company is acquired for a premium and the product is shuttered.

"It seems these guys (at OnTheAir) are going to join Yahoo as engineers in mobile," says Internet analyst Greg Sterling.

The site has been described by other analysts as a cross between Skype and Google+ Hangouts. Its investors include private investor Will Smith and Triple Point Ventures.

OnTheAir executives, in a statement, said they were "excited" to join Yahoo and help them attain their "dream of building a widespread daily product."