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.