Having joined Yahoo in the last year, CEO Marissa Mayer is now concentrating on the acquisition of various small startups in order to grow the company further. This includes names like Stamped and Summly. The startups are being acquired for over millions of dollars.However, most startups here hesitate to get themselves sold to this giant company.
The startup Summly was acquired for a $30 million. Founded by the seventeen year old CEO Nick D’Aloisio, high school student from London the startup mainly dealt with providing smartphones with an app for news aggregation. It has however, not managed to win many users. Also, its technology was not built by its own employees but by an organization called the SRI International. Its app was built by a company called Somo, a mobile marketing agency in the U.K. However, in spite of all these, the original technology behind Summly’s product was built by the CEO himself.
"Basically, Nick developed the original code for Summly.", says a spokesperson at SRI, as reported by the business insider. Also, the outsourcing of the startup’s technology and app development is the work of the startup’s CEO.
Yahoo’s acquisition of Summly was mainly a part of a deal with SRI in exchange for summarization technology, what the CEO believes is "going to be huge for Yahoo", as reported by the business insider. "After the original product was built, SRI supported development of the technology and provided artificial intelligence expertise in machine learning and natural language processing." The CEO of Summly will now stay at Yahoo for the following seventeen months.