Alphabet Inc (NASDAQ:GOOGL) And Others Invest $100 Million In Symphony
Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) is one of the latest investors in Symphony, a financial chat service. According to Symphony, Alphabet, USB, Societe Generale and others invested $100 million in it. With the new funding, the valuation of Symphony is quoted in the vicinity of $650 million.
Alphabet Inc (NASDAQ:GOOGL) becomes the first major technology company to put money in Symphony. With the investment, Alphabet is showing its growing appetite for the financial service market. In recent times, Alphabet has appeared to be more interested in getting deeper into the financial world as part of its revenue diversification.
Alphabet’s desire for deeper presence in the financial industry can be seen from the move to hire its CFO from Wall Street. The parent company of Google tapped Ruth Porat from Morgan Stanley (NYSE:MS) to be its CFO. Through Wall Street insider Porat, Alphabet has reportedly been holding briefings with financial analysts on Wall Street as it seeks to widen its presence in the financial industry.
The investment in Symphony is the latest of Alphabet’s maneuvers for land-grab on Wall Street.
A promising financial chat service
Symphony is turning out to be a popular messaging service in the financial industry. The service is used by investment managers and traders on Wall Street. Symphony offers a modified instant chat service that supports communication between individuals or in groups.
As a financial chat service, Symphony rivals Bloomberg terminals, but it is cheaper. Symphony costs only $15 a month per user compared to Bloomberg terminals that can cost as much as $25,000 each. Over 40,000 people use Symphony and the service is available in 100 countries.
Financial companies that already use Symphony include Goldman Sachs Group Inc (NYSE:GS), Credit Suisse, Bank of New York Mellon Corp (NYSE:BK) and Deutsche Bank. These customers are also major investors in the financial messaging service.
In addition to Alphabet Inc (NASDAQ:GOOGL), USB, Societe Generale and the above mentioned investors, other backers of Symphony are Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM) and BlackRock, Inc. (NYSE:BLK).
In the corporate chat service market, Symphony also competes with Slack. Alphabet Inc (NASDAQ:GOOGL) has also invested in Slack.
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