AOL Buys Gravity for $90M


Kara Swisher of reports, "In a bid to add another publishing and advertising tool to its offerings, AOL has acquired personalization startup Gravity for about $90 million in cash. As part of the deal, which is expected to close in the first quarter, the New York-based company said it will also '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.' 'It’s been search, then social and now personal,' said AOL CEO Tim Armstrong in an interview last night about the transaction, echoing a motto that Gravity CEO Amit Kapur has been using since he co-founded the company in 2009. 'We think we can get a clearer signal with content with personalization to improve our results and better monetize what we offer.' ”


Swisher goes on, "Gravity has raised close to $21 million since it was launched in 2009, with venture investors including August Capital, Upfront Ventures and Redpoint Ventures. Post-acquisition, AOL is going to use Gravity’s technology on content across its properties, such as the Huffington Post, and across multiple devices to offer more relevant content, as well as continuing to power the same for other publishers. But it will also use its personal and real-time filters to help marketers gain insights based on content consumption and also offer more engaging ads."


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Image: Courtesy Gravity