AOL Acquires Content Personalization Startup Gravity


AOL announced its acquisition of Gravity today, a software startup that helps personalize user’s social media and web searches.

The deal is reportedly valued at $83 million with an extra $7.7 million paid out over the next two years after the deal officially closes.

TechCrunch, being an AOL company, got its hands on an internal memo, and here’s what it said:

“While evaluating a network-wide commercial deal with Gravity, we determined that owning the technology that powers personalization on our content pages is imperative as we didn’t want to become dependent on a third party’s ability to provide this functionality for an important consumer facing, core aspect of our business. We also realized that by owning this tech, AOL could own a key component of the web’s plumbing and offer it to our network of publishing partners.”

According to Gravity, it personalizes over 1 billion pageviews per month, and on average, helps to increase engagement by 240 percent.

AOL will also acquire the startup’s $12 million in net operating losses, and the service will continue to work with current partners such as USA Today.

Mike Stenger

Lover of technology, Mike often makes jokes that nobody laughs at.


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