The $30 million Yahoo paid a 17 year old for an app raised quite some eye brows. A new report reveals the real reasons why Yahoo bought the app for that high price.
17-year-old Nick D'Aloisio sold his app called Summly to Yahoo! for a whopping $30 million. Why so much money? Initiall I thought because of the celebrity investors and major backers that Summly had. Business Insider reports now that the whole deal is much more complicated.
Nick D'Aloisio worked with SRI International on the summarization technology. Basically the AI part is SRI technology. Yahoo has separately made agreements with SRI on summarization technology as the company sees summarization as a major upcoming feature for mobile content consumption.
SRI was also an investor in Summly. Somehow the Summly purchase is part of the deal with SRI. Nick D'Aloisio's company did not write the app itself. They outsourced that as well.
It looks like D'Aloisio got really lucky. He had a great idea to begin with and somehow got involved with the right people. Kudos to that.