Online translation company Babylon Ltd. (TASE:BBYL) has signed a cooperation agreement with Ask.com (APN LLC). The companies will share revenue from online advertising.
Under the agreement, Babylon promises minimum joint volume of activity on the basis of a predetermined formula. Babylon believes that there is little chance that the target will not be met. Babylon obtained the right to offer the joint services to its customers and business partners.
The agreement is for an initial period of three months, after which Babylon will decide whether to sign a long-term agreement. The advertising revenue sharing agreement will continue for 12 months after the termination of the agreement.
In the notice to the TASE, Babylon added the usual caveat, "Babylon's management believes that the cooperation with Ask.com will make a substantial contribution to the company. At this stage, management cannot estimate the size of the contribution."
In November, Babylon is due to announce the renewal of its cooperation agreement with Google Inc. (Nasdaq: GOOG).
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2013
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