AOL acquires Gravity for $83M

aol AOL is to acquire Gravity, a  company that provides multi-screen content optimisation and personalisation, for 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.

Gravity personalises 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  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.

“The web is moving to the era of personal, and a personal web filter will reshape how consumers get information and services,” said gravityAOL Chairman and CEO Tim Armstrong. “Gravity is joining AOL to lead the personalization transformation of AOL’s brands and platform partners.”

The Gravity product and team will report to AOL Brand Group Head of Product, Luke Beatty.

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