AOL has purchased personalization startup Gravity for $83 million in cash. The deal also includes roughly $12 million of net operating losses which officials will later use as a future tax benefit to the tune of around $5 million according to a report from Re/code.
AOL CEO Tim Armstrong told the publication that it’s been search, then social and now personal – referring of course to popular trends over the past several years. Armstrong said he thinks they can get a clearer signal with content with personalization to improve their results and better monetize what they offer.
Gravity CEO Amit Kapur said the deal throws more fuel on the fire to grow their network and the more reach their tech gets, the better data insights they can have. The Gravity name will live on moving forward and the team of 40 will maintain their headquarters in Santa Monica, California. The division will report to Luke Beatty, head of product for the AOL Brand Group.
AOL plans to use the technology across several of their properties like the Huffington Post as well as across multiple devices to dish up more relevant content. Meanwhile, the company’s real-time filters will be useful to help marketers get a better idea of what is and isn’t successful in terms of consumption.
The deal is expected to close sometime in the first quarter of this year, pending regulatory approval and the like.
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