Babylon: Following proactive steps by the company to correct flaws, Yahoo will not suspend or cancel their agreement.
Babylon Ltd. (TASE:BBYL) announced this morning that, last night, Yahoo! Inc. (Nasdaq: YHOO) notified the company that, following proactive steps taken by Babylon to correct flaws, Yahoo! will not suspend or cancel the agreement between the companies.
Babylon said that it would use additional monitoring systems to prevent the recurrence of similar incidents in the future, and that it would resume the cautious purchases of new users in coordination and full transparency with Yahoo!.
Babylon’s collaboration with Yahoo! accounts for a third of Babylon’s revenue. In addition to the problems with Yahoo!, in late October, Babylon announced that Google Inc. (Nasdaq: GOOG) would not renew its contract with Babylon, which expires at the end of November. Babylon said that the reason for Google’s decision was the large number of complaints by users of the Google Chrome browser who said that the installation of Babylon’s browser adversely affected their user experience on the browser. This raised concern by Google about Babylon’s ability to offer a positive user experience. Google said that it would review its decision in 2014.
Babylon warned that the termination of the agreement with Google would have a material effect on its revenue and profits. The agreement with Google accounted for 43% of Babylon’s revenue in the second quarter.
Babylon, who controlling shareholder is Noam Lanir, will publish its financial report for the third quarter on Monday.
Published by www.globes-online.com