Microsoft Corporation (MSFT), Apple Inc. (AAPL), Yahoo! Inc. (YHOO), Google Inc (GOOGL) In Race To Buy Prismatic
A fierce tussle has ensued in the race to acquire social news reader Prismatic, which continues to draw serious attention from Apple Inc. (NASDAQ:AAPL) and Yahoo! Inc. (NASDAQ:YHOO). Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT), which have been keen on snatching startups also have reportedly shown interest in acquiring the start-up. The app has grown in popularity on its model of recommending news articles to users based on their likings and readings. Microsoft is however believed to be the front-runner to acquire it.
It would be the first time that an app has brought together Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) GOOGLE and Yahoo! Inc. (NASDAQ:YHOO) in a potential bidding war in a push to become the outright owner. Prismatic has reportedly raised $15 million to date from investors like Accel Partners, Jim Breyer, and Yuri Milner. The news app was co-founded by current CEO Bradford Cross and Aria Highlight, who currently works at Apple.
Microsoft May Be Front-Runner
Sources are however saying that Yahoo! Inc. (NASDAQ:YHOO) and Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL) might have lost the race to Microsoft, which could walk away with the app for $30 million. Microsoft Corporation (NASDAQ:MSFT) has made over 143 acquisitions to date as the company seeks to fill out its mobile apps portfolio.
Prismatic attracting attention from Apple, Google, Facebook, and Microsoft Corporation (NASDAQ:MSFT) only goes to show the potential of its technology as well as the positive challenge that news aggregation startups face nowadays. The app was founded on the idea of providing a platform that could provide accurate recommendations for content through the use of algorithms as well as using social signals.
Prismatic main product has been its consumer-focused news reader available both on iOS Android as well as the web. The app recommends stories based on what one specifies be it food phones, etc. It has not been the best of rides for the startup especially in getting people interested in using it, for reading news. Downloads of the app also paint a negative picture having never managed to break into iPhones top 200 apps.
There is however hope that its technology could be built to become part of bigger business that could be used to raise money for the likes of Apple Inc. (NASDAQ:AAPL) Google Inc (NASDAQ:GOOGL) Microsoft Corporation (NASDAQ:MSFT) and Yahoo! Inc. (NASDAQ:YHOO).
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