Internet search giant
) completed its acquisition of Seattle-based startup Wavii for
$30 million in cash.
Founded by Adrian Aoun, Wavii is a news summarization app. The
app summarizes news stories into a few sentences. Its
investors include Paypal co-founder Max Levchin, Dave Morin, a
) executive and Fritz Lanman from
Before Google acquired Wavii,
) had shown interest in the app as it wanted to incorporate it
into its voice-activated personal assistant feature called Siri.
Though the deal fell through, Wavii's iOS app is freely available
for iPhone on the App Store.
After the acquisition, the Wavii team will be integrated into
Google's Knowledge Graph division team.
Recently, Internet giant Yahoo! Inc. acquired Summly, a news
condenser app, for $30 million. Yahoo and Google are the primary
news aggregators, so they are directly impacted by these
news-reading apps. The social application of news is becoming
increasingly important for companies like Google and Yahoo, as
Facebook is increasing the social application of news.
Google is quite active on the merger and acquisition front. In
Feb 2013, it acquired Channel Intelligence for $125 million to
boost its e-commerce business. Earlier this year, it also
acquired an infrastructure startup company, Talaria Technologies
to boost its cloud offerings. Recently, Google acquired Behavio,
a mobile sensor start-up company, for an undisclosed sum.
In the first quarter of fiscal 2013, Google's gross revenue
(including TAC) touched a record $14.4 billion, representing
sequential and year-over-year increases of 2.3% and 36.2%,
respectively. Excluding the $1.5 billion contribution from
Motorola, revenues were up 21.9% from the year-ago quarter.
Google has a Zacks Rank #3 (Hold).
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