Internet search giant Google Inc. completed its acquisition of Seattle-based startup Wavii for $30 million in cash.
Founded by Adrian Aoun, Wavii is a news summarization app. The app summarizes news stories into a few sentences. Its investors include Paypal co-founder Max Levchin, Dave Morin, a former Facebook (FB - Free Report) executive and Fritz Lanman from Microsoft Corp. (MSFT - Free Report) .
Before Google acquired Wavii, Apple Inc. (AAPL - Free Report) had shown interest in the app as it wanted to incorporate it into its voice-activated personal assistant feature called Siri. Though the deal fell through, Wavii's iOS app is freely available for iPhone on the App Store.
After the acquisition, the Wavii team will be integrated into Google’s Knowledge Graph division team.
Recently, Internet giant Yahoo! Inc. acquired Summly, a news condenser app, for $30 million. Yahoo and Google are the primary news aggregators, so they are directly impacted by these news-reading apps. The social application of news is becoming increasingly important for companies like Google and Yahoo, as Facebook is increasing the social application of news.
Google is quite active on the merger and acquisition front. In Feb 2013, it acquired Channel Intelligence for $125 million to boost its e-commerce business. Earlier this year, it also acquired an infrastructure startup company, Talaria Technologies to boost its cloud offerings. Recently, Google acquired Behavio, a mobile sensor start-up company, for an undisclosed sum.
In the first quarter of fiscal 2013, Google’s gross revenue (including TAC) touched a record $14.4 billion, representing sequential and year-over-year increases of 2.3% and 36.2%, respectively. Excluding the $1.5 billion contribution from Motorola, revenues were up 21.9% from the year-ago quarter.
Google has a Zacks Rank #3 (Hold).