AOL Buys Content Personalization Firm Gravity

Online news and content provider AOL is to acquire multi-screen content optimization and personalization firm Gravity for an initial $83m, with a further $7.7m deferred over the next two years.

Founded in 2009 by early MySpace execs Amit Kapur, Jim Benedetto and Steve Pearman, Gravity applies a personal real-time filter to online information. Its patented technology then creates 'Interest Graphs' based on individuals' interests, preferences and habits, to enable publishers to offer tailored editorial and advertising content to their readers.

AOL says the acquisition will enable its publisher network of more than 2,000 firms and its advertisers to deliver personalized and relevant content recommendations and branded content to each of its users, based on their specific interests. In addition, the deal will add improved analytics and targeting to AOL's platform. After closing, the Gravity 40-person team will remain in Santa Monica, Calif, and report to AOL Brand Group Head of Product, Luke Beatty.

Tim Armstrong (pictured), AOL Chairman and CEO, comments: 'The web is moving to the era of personal, and a personal web filter will reshape how consumers get information and services. Gravity is joining AOL to lead the personalization transformation of our brands and platform partners.'

Web site: www.aol.com and www.gravity.com .