Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2013-04-23/yahoo-deal-boosts-babylon-shares-to-month-high-tel-aviv-mover

Bloomberg News

Yahoo Deal Boosts Babylon Shares to Month High: Tel Aviv Mover

April 23, 2013

Babylon Ltd. (BBYL) advanced to the highest level in more than a month on bets the Israeli software maker’s new Internet advertising revenue-sharing agreement with Yahoo! Inc. (YHOO:US) will boost sales.

Shares of the company, which has a similar relationship with Google Inc., jumped 3.9 percent to 22 shekels, the highest intraday level since March 17, at 12:35 p.m. in Tel Aviv. Volume on the stock was 40 percent above the 15-day moving average. Babylon’s shares were the second-biggest gainers in percentage terms on the TA-100 Index, which added 0.2 percent.

Babylon, based in Or-Yehuda, Israel, rose for a fifth day after saying today that it signed a four-year accord with Yahoo to share revenue from on-line advertising, including mobile Internet. The company expects the agreement to make a “significant contribution” to business, according to a filing today with the Tel-Aviv Stock Exchange.

“The four-year accord significantly lowers the risk for the company,” Beni Dekel, an analyst at Union Bank of Israel Ltd., said by phone today. Dekel upgraded the company to “buy” on April 18. “For the first time the company will get a percentage of revenues from advertising as opposed to just a fixed amount per user and the accord opens up a new mobile market.”

Babylon’s stock, which more than doubled last year, fell 25 percent in the two-month period ending March 31 on concern that a change in the company’s relationship with Google will hurt revenue. Google contributed 83 percent to Babylon’s 2012 sales, a company filing showed in February.

“I wouldn’t be surprised if by the end of the year Yahoo will be Babylon’s main customer,” Dekel said.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus