Yahoo! Spends $30 Million To Acquire Summly, A Mobile News Reading App Created By A Teenager
Yahoo! has acquired Summly, a company that has created a stylish news reading app for mobile devices. The app was put together by Nick D’Aloisio, a 17-year-old that works with a team of 5 total people. Surprisingly, Yahoo! is shutting down the app, but they plan to use the algorithmic summation technology that was created by the company for usage throughout their own products. Yahoo! did not disclose the price that they spent for the company, but sources with AllThingsD reported that it was for $30 million – 90% in cash and 10% in stock.
The Summly app was downloaded less than one million times since launching, but around 90 million “summaries” have been read. The company did not have monetization plan yet either.
Yahoo! CEO Marissa Mayer met with D’Aloisio prior to the acquisition, bt the deal was put together by Yahoo!’s mergers and acquisitions head Jackie Reses.
“At the age of 15, Nick D’Aloisio created the Summly app at his home in London. It started with an insight — that we live in a world of constant information and need new ways to simplify how we find the stories that are important to us, at a glance. Mobile devices are shifting our daily routines, and users have changed not only what, but how much information they consume. Yet most articles and web pages were formatted for browsing with mouse clicks. The ability to skim them on a phone or a tablet can be a real challenge — we want easier ways to identify what’s important to us,” said Yahoo! SVP of Mobile and Emerging Products Adam Cahan on the company’s blog.
Below is a video of D’Aloisio explaining what his app does with the help of Stephen Fry: