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United States : BABYLON contract discontinued by Google
Publish Date : 01-Nov-2013
Babylon Ltd. informed the TASE that Google Inc. will not renew its agreement with the company, which ends on November 30, due to the large number of grievance that Google has received from users of its Chrome browser. The users say that installing Babylon's browser harms their user experience, raising worry at Google about Babylon's ability to provide a positive user experience.
Babylon added that Google said that it might reconsider the decision in 2014.
Babylon advised that the termination of the agreement would have a material effect on its revenue and profits, given that the Google agreement accounted for 43% of the company's revenue in the second quarter of 2013.
Google's notice goes after Babylon's difficulty with Yahoo! Inc. (Nasdaq: YHOO), which caution the company that if it did not immediately correct fault in its product, it would terminate their agreement. Babylon said that it is working on the problem and that Yahoo has not yet suspended their agreement.
Babylon CEO Alon Carmeli in response said,"The events that Babylon has experience in the past few days are not only related to Babylon, but are industry-wideâ€. "As industry leaders, we are the first to be affected by the events to such a degree."
Carmeli added that he and Babylon controlling shareholder Noam Lanir were committed to the company. "We believe in the company and we're looking forward. Together with the company's employees, experience and knowhow, and despite the complex challenges, we will do the utmost, using all the means at our disposal to adapt the company to the new reality.
"Babylon has extensive knowhow, a track record, distribution and online monetization capabilities, and advanced technology about everything related to the Internet worlds and users. We're working to adapt to the new reality on the basis of these capabilities. We'll naturally continue to update investors on material developments on this matter."
