Boston, MA 12/19/2013 (wallstreetpr) – Yahoo! Inc. (NASDAQ:YHOO) announced last month that it would keep its agreement with Israel-based digital company Babylon Ltd even as Google Inc (NASDAQ:GOOG) announced that it was ending its relationship with the company.
The reason Yahoo! Inc. (NASDAQ:YHOO) will continue its association with Babylon is because the company which offers translation and dictionary solutions took proactive steps to correct the flaws in its system. The flaws in Babylon’s system affected thousands of YHOO and Google users, leading to numerous complaints by Web users on the two leading online platforms.
Due to the proactive response and speedy resolution of Babylon, YHOO stated that it was not considering suspension or cancelation of its agreement with the Israel–based company.
On its part, Babylon is promising to introduce additional monitoring systems so as to prevent the occurrence of similar flaws in the future. These cautionary steps will also include transparent dealings with YHOO in the future.
The collaboration with Yahoo! Inc. (NASDAQ:YHOO) contributes about a third of revenue collection by Babylon.
The challenge in Babylon’s system cast doubts about its ability to offer positive user experience. This is what led to Google canceling its deal with the company, but promised to review its decision next year. Up until the suspension of Google-Babylon deal, Google contributed 43 percent of the latter’s revenue in the second quarter. This compares to a third of the revenue which Yahoo! Inc. (NASDAQ:YHOO) contributes to the Israeli software company.
It thus goes without saying that termination of the deal with Google would heavily impact the company’s revenue and profits.
About Babylon
Babylon is an Israeli software company that provides translation and dictionary solutions. The company’s services are targeted at corporate originations and private users. It partners with Internet companies to offer its services to clients
Yahoo advantage
With the exit of Google, Yahoo! Inc. (NASDAQ:YHOO) now remains one of Babylon’s most significant platforms.
