March 26, 2013
Yahoo Aims For Simplicity With $30M Summly Acquisition
Enid Burns for redOrbit.com — Your Universe Online
Yahoo has acquired Summly, a mobile news aggregator that aims to make the gathering of news and information simple. Summly was acquired for a reported $30 million; 90 percent in cash and 10 percent in stock, according to AllThingsD.The mobile news aggregator has some high-profile relationships and investors. Summly works closely with News Corp, and is backed by Chinese investor Li Ka-Shing and angel investors including Ashton Kutcher and artist Yoko Ono, Yahoo News reports.
Summly has been downloaded nearly one million times since its launch.
The 18-month old Summly's founder is 17-years old, younger than most of the interns who serve at Yahoo. Yahoo gives a little background on founder Nick D'Aloisio, who formed the company when he was 15, on its blog detailing the acquisition.
D'Aloisio describes the acquisition as the perfect fit in a memo that runs atop the company's page.
"Our vision is to simplify how we get information and we are thrilled to continue this mission with Yahoo!'s global scale and expertise. After spending some time on campus, I discovered that Yahoo! Has an inspirational goal to make people's daily routines entertaining and meaningful, and mobile will be a central part of that vision. For us, it's the perfect fit," the memo said.
Yahoo is on a bit of an acquisition spree. The search company announced the purchase of social recommendation site Jybe last week, USA Today reported. The paper also says that Yahoo will shut down the Summly app, and incorporate its technology into Yahoo's existing products. Yahoo expects Summly to enhance its existing offerings. Yahoo will use Summly's algorithmic summation technology to enhance its own app. No details were given as to when Yahoo will add Summly features to its existing mobile offerings.
"Mobile devices are at the center of how we engage with the people, experiences and interests we love. Across Yahoo!, we're focused on creating beautiful experiences that people are excited to use every day -- products that inspire and delight," said Yahoo! SVP of mobile and emerging products Adam Cahan, in a blog post about the acquisition.
As part of the deal, three Summly employees will join Yahoo. The deal is subject to closing conditions, and is expected to close next quarter. D'Aloisio will remain in London, where he attends King's College School. He will be Yahoo's youngest employee. He commented to Reuters that because of his age, he has to wait to get access to the money he made from the sale of his company.
Yahoo shares rose $0.19 on Monday to reach $23.45 after news of the announcement. Yahoo stock has been on an upward trend since Marissa Mayer became CEO last July. Since that time the company has faced a redesign and worked to build out its offerings on multiple platforms.