AOL MAKES IT PERSONAL WITH AGREEMENT TO ACQUIRE GRAVITY

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– Beyond Search and Social, AOL to Lead Personalization of the Internet –
– Gravity’s Industry Leading Interest Graph Improves Content Connections for Publishers and Advertisers on All Devices

AOL Inc. (NYSE: AOL) announced, it has entered into an agreement to acquire Gravity, a leading company in multi-screen content optimization and personalization and the company that created the Interest Graph.
Gravity personalizes the Internet beyond search and social by applying a personal and real-time filter to the ever-growing volume of digital information available for consumption. Gravity’s patented technology creates Interest Graphs based on individuals’ interests, preferences and habits and allows publishers to offer a tailored and relevant selection of editorial and advertising content to readers.
Gravity’s technology will act as an accelerator in virtually all areas of AOL’s strategy to create more engaging, relevant and valuable experiences for its consumers, advertisers and publisher partners.
The combination of AOL and Gravity will:

  • Advance AOL’s ability to distribute relevant and engaging content and advertising across the Internet through intelligent technology;
  • Personalize and make more engaging AOL’s portfolio of brands for consumers through the delivery of relevant content in real-time across all devices;
  • Enable AOL’s publisher network of more than 2,000 partners to deliver personalized and relevant content recommendations and branded content to each of its users;
  • Allow AOL’s current and prospective advertisers to deliver relevant branded content to consumers based on their specific interests where and when they are most engaged;
  • Enhance the performance of AOL’s programmatic platform with improved analytics and targeting;
  • Further strengthen AOL’s technology infrastructure by supplying relevant and engaging content and ad experiences in all formats and across all screens in real-time;
  • Add Gravity’s highly talented executive team as well as a team of engineers with expertise in content optimization and data science to the AOL ranks.

“The web is moving to the era of personal, and a personal web filter will reshape how consumers get information and services,” said AOL Chairman and CEO Tim Armstrong. “Gravity is joining AOL to lead the personalization transformation of AOL’s brands and platform partners.”
“Every day we’re presented with an overwhelming amount of information to consume on our favorite websites and apps,” said Gravity CEO Amit Kapur. “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.”
Gravity will bring to AOL a client base of top publishers and brands such as Sony, Intel, USA Today and GAP. Since the launch of the Gravity API last year, there have been more than one billion personalized page views per month on some of the biggest publisher sites on the web, and its technology has increased engagement by 240% compared to sites that do not have personalization.
After closing, the Gravity product and team will report to AOL Brand Group Head of Product, Luke Beatty.
AOL has agreed to acquire Gravity for a closing purchase price of approximately $83 million. An additional $7.7 million of consideration will be deferred and paid over two years following closing. As part of the transaction, AOL will acquire approximately $12 million of net operating losses, which is expected to result in a future cash tax benefit to AOL of approximately $5 million. AOL expects the acquisition to close in the first quarter of 2014.
About AOL AOL Inc. (NYSE: AOL) is a brand company, committed to continuously innovating, growing, and investing in brands and experiences that inform, entertain, and connect the world. The home of a world-class collection of premium brands, AOL creates original content that engages audiences on a local and global scale. We help marketers connect with these audiences through effective and engaging digital advertising solutions.
About Gravity Founded in 2009 by early-on MySpacers Amit Kapur, Jim Benedetto, and Steve Pearman, Gravity aims to personalize the Internet. Through our applications, Gravity understands people’s interests so that our partners can create more relevant experiences for their users. Our goal is to build a smarter internet that helps people sift through the overwhelming amount of information on the web, while delivering a serendipitous experience that exposes them to the breadth and depth of the Internet.
Today, Gravity works with some of the largest, most well-known brands on the internet, and processes hundreds of millions of data points each day.
For more information, please visit Gravity.com and follow @Gravity on Twitter.

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Mohit Bansal(23) is B.Tech in Electronics and Communication Engineering from Indian School of Mines, Dhanbad, India. He has interest in business and entrepreneurship and has published couple of research articles. He is also associated with various NGOs. He is with Techaloo when it was just in concept stage. The Techaloo site was not existing even then. Currently Mohit is working with Mu Sigma as a Business Analyst Profile.

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