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Israel: Yahoo throws Babylon a lifeline following merger destruction

 |  November 11, 2013

Israel’s Babylon announced Monday that its proposed merger with software application firm ironSource would be cancelled indefinitely following weaker third quarter profits.

Following the news, Google said it would not renew its partnership with Babylon; Google’s backing out is more bad news for Babylon, as Google made up about 43 percent of the company’s revenue.

Babylon shares rose Monday, however, following Yahoo’s announcement that it would not cancel a cooperation agreement.

Babylon was looking to double its market capitalization through the merger with ironSource, also based in Israel.

According to Babylon, the company’s failed merger did not account for Google’s decision to not renew their partnership contract, which expires at the end of the month.

Full Content: Wall Street Journal

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