Yahoo! warns Babylon on agreement

Babylon has received notification that Yahoo! considers it in breach of the July 2012 agreement between the two companies.

Online translation technology company Babylon Ltd. (TASE:BBYL) notified the Tel Aviv Stock Exchange this morning that it had received a letter from Yahoo! stating that there were deficiencies in the way Babylon was implementing the agreement between the two companies of July 2012, and that Yahoo! saw these deficiencies as a breach of the agreement.

Yahoo! says in the letter that it will give Babylon until tomorrow evening to remedy the deficiencies, and that, unless it does so, Yahoo! is liable to suspend the agreement.

Babylon states that it is in touch with Yahoo! and that it began immediately to repair the deficiencies mentioned in the letter, but that "the company's management cannot estimate at this stage what the effect of Yahoo!'s approach will be."

According to Babylon's second quarter financial statement, its agreement with Yahoo! generated a third of its revenue in the quarter and 20% of its revenue in the first half.

Published by Globes [online], Israel business news - - on October 20, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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