What: Through a US $83 million agreement, AOL will acquire the software startup Gravity and its’ interest Graphs.
Why it matters: Gravity will add content from AOL’s sites into its personalisation engine. Gravity personalizes the internet by applying a personal and real-time filter to the volume of digital information available for consumption
Gravity personalizes the internet by applying a personal and real-time filter to the volume of digital information available for consumption.Gravity also creates Interest Graphs based on individuals’ interests, preferences and habits and allows publishers to offer a personalized and relevant selection of editorial and advertising content to readers.
Gravity will start adding content from AOL’s sites into its personalisation engine.
The software startups will act as an accelerator in most of AOL’s strategy areas to create more relevant experiences for its consumers, advertisers and publisher partners.Gravity will continue working with its existing partners, such as USA Today and Gap .However, it will start adding content from AOL’s sites into its personalization engine.
Gravity product and team will report to AOL Brand Group Head of Product, Luke Beatty.
The agreement closing price was of around US $83 million.An additional sum of US $ 7.7 million will be paid over two years after the agreement has been closed.As part of the transaction, AOL will acquire around US $12 million of net operating losses, which is expected to result in a future cash tax benefit to AOL of approximately US $5 million.
The acquisition is expected to close in the first quarter of 2014.”It’s time to move beyond searching for the best content to having the best content search for you. We believe that by combining AOL’s vast brand, publisher and advertiser network with Gravity’s interest graph technology, we can do just that,” said Gravity CEO Amit Kapur.