AOL, Inc. (AOL) Buys Gravity To Lead Personalization Transformation

AOLImage source: Made with Photoshop

AOL, Inc. (NYSE:AOL) agreed to buy Gravity, a multi-screen content optimization and personalization company for $83 million and an additional $7.7 million will be paid over two years after the closing of the transaction.

Under the agreement AOL, Inc. (NYSE:AOL) will acquire approximately $12 million of net operating losses of Gravity, which is expected to result in a future cash tax benefit of around $5 million. The transaction is expected to close in the first quarter of this year.

Gravity’s product team will report to Luke Beatty, head of product at AOL Brand Group.

Leading AOL’s personalization transformation

Tim Armstrong, chairman and chief executive officer of AOL, Inc. (NYSE:AOL) said Gravity will join the company to lead in the personalization transformation of the AOL brands and platform partners. According to him, “The web is moving to the era of personal, and a personal web filter will reshape how consumers get information and services.”

Gravity was responsible in creating the Interest Graph based on the interests, preferences, and habits of individuals using its patented technology. The Interest Graph allows publishers to offer a tailored advertising and editorial content to readers.

Creating the best content and search experience

According to AOL, Inc. (NYSE:AOL), Gravity personalized the internet beyond search and social by integrating personal and real-time filters to the increasing volume of information available on the web. Using its technology, it will act as an accelerator in all of the strategy areas of AOL to create relevant, more engaging, and valuable experiences for consumers, advertisers and publisher partners.

Amit Kumar, CEO of Gravity said, “Every day we’re presented with an overwhelming amount of information to consume on our favorite websites and apps. 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.”

Bringing top brands and publisher client base to AOL

Gravity will bring its client base of top brands and publishers to AOL, Inc (NYSE:AOL). Some of its clients include Intel Corporation (NASDAQ:INTC), Sony Corporation (NYSE:SNE) (TYO:6758), The Gap Inc. (NYSE:GPS), and USA Today.

According to the company, some of the biggest publisher sites on the web enjoyed more than one billion personalized page views since the launching of its Gravity API last year, and its technology increased user engagement by 240%.

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About the Author

Marie Cabural
Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.

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