- Whirlpool Corporation announced it has reached an agreement to acquire Yummly, a digital recipe platform, per a joint press release. Terms of the deal were not released.
- The reasoning behind the acquisition is strengthening its abilities in the Internet of Things (IoT) space according to Whirlpool.
- "We are committed to introducing new products to market that remove complexity from the day-to-day lives of consumers. Increasingly, these products will be defined by both physical and digital experiences. Yummly brings an outstanding platform on which to begin building our digital product offering," said Brett Dibkey, vice president, Integrated Business Units for Whirlpool Corporation, in the press release.
The deal is the latest example of non-tech and consumer-oriented brands buying tech startups, and TechCrunch reporting pointed out startups dedicated to specific verticals may start looking for these types of exits given the overwhelming digital competition.
For Whirlpool, the acquisition adds Yummly’s more-than 20 million registered users into its strategy to create a seamlessly integrated connected kitchen and in this case checks off the digital meal planning box within the larger strategy.
Non-tech brands are still trying to figure out the best way to approach the startup ecosystem. One trend that hit some backlash was brands like Coca-Cola starting and later ending startup accelerator and incubator programs. Instead of bringing startups into the fold early and picking from the best, the alternative is an approach like Whirlpool's where brands research relevant startups that have the capabilities the brand is looking for and acquiring them at a more mature stage.