A few weeks ago, Yahoo made headlines when it acquired Summly, a startup run by a 17-year-old CEO namedÂ Nick D’AloisioÂ for $30 million.
Summly is a news aggregation app.
Here is why:
Now we’ve learned another piece of information that makes the deal stranger.Â
Not only did the Summly team not invent the app’s technology, they also did not build the app. A company called Somo did. Somo is “the UK’s largest independent mobile marketing agency.”Â It just raised a bunch of money.
So here is what Yahoo did: It “aqui-hired” a team of people, led by a 17-year-old living in London, that cannot claim to have invented a cool technology OR to have built a cool app. Yahoo does own the technology SRI invented for Summly, but it doesn’t own SRI, so it hasn’t acquired the team that can scale the technology for Yahoo.
Anyway, $30 million is not a lot of money for Yahoo, and this story is getting a little old, so we’re kind of beating a dead horse. But still. What a strange acquisition.
Business Insider is a new business site with deep financial, entertainment, green tech and digital industry verticals. The flagship vertical, Silicon Alley Insider, launched on July 19, 2007, led by DoubleClick founders Dwight Merriman and Kevin Ryan and former top-ranked Wall Street analyst Henry Blodget.