Yahoo! Acquires Mobile News Reader Summly for $30 Million
Shelly Palmer
Yahoo has bought Summly, the mobile news reader app founded by a young British entrepreneur. In a statement, the London-based company said it had bought the tiny outfit, which will close its app. The price was not disclosed (although I will try to find out soon enough). But the company had been seeking additional funding recently at a big valuation, in stark contrast to its small size (less than one million downloads), staff (five) and business model (zero revenue). Sources tell me Yahoo paid just about $30 million for Summly, mostly in cash, with 10 percent in stock. ATD reported in December that Yahoo was looking closely at the startup, with CEO Marissa Mayer meeting with its founder Nick D’Aloisio. As we noted then, Yahoo was aiming at trendy mobile “acqhires” to give the sleepy Silicon Valley Internet giant some sizzle and improve its moribund mobile offerings.
