Yahoo shells out for Summly news reading app

Yahoo shells out for Summly news reading app

26 MAR 2013

Yahoo has acquired the UK-based news reading app Summly and plans to integrate the technology into its own mobile offerings.

Summly delivers snapshots of news stories, enabling users to quickly find content It is the brainchild of 17-year-old Nick D’Aloisio, who launched Summly in December 2011, when he was just 15.

The app will be closed following the acquisition while D’Aloisio and his small team will join Yahoo in the next few weeks.

According to AllThingsD sources Yahoo paid around $30 million for the app with 90 per cent in cash and the remainder in stock. The transaction is expected to close in the second quarter, subject to closing conditions.

D’Aloisio wrote on the Summly website that Yahoo sees mobile as a central part of its vision and thanked Summly backers Li Ka-Shing and Horizons Ventures.

Angel investors include actors Ashton Kutcher and Stephen Fry, WordPress founder Matt Mullenweg and Yoko Ono.

Yahoo acquired personalised recommendation app Jybe last week. Like Summly, Yahoo closed the app but plans to use the experience within the Jybe team to develop new Yahoo services.

Yahoo CEO Marissa Mayer said in February that the company could benefit from reducing the number of smartphone apps it offers to between 12 and 15 apps compared to the current “scattered” portfolio.

Author

Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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