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AOL in $90M deal for personalization start-up Gravity

Screen of Gravity website
Source: Gravity
Screen of Gravity website

AOL is buying content personalization start-up Gravity for about $90 million in cash.

The purchase will include $12 million of net operating losses, which will result in a cash tax benefit to AOL of about $5 million.

AOL will use Gravity's technology across various devices and its properties, including the Huffington Post.

(Read here: AOL unloads money-losing local news service)

"AOL is going to be a supercustomer of Gravity," AOL CEO Tim Armstrong said. "But this is about extending those capabilities even further as personal becomes the most important signal for publishers and advertisers."

Gravity will continue to operate from its main headquarters in Santa Monica, Calif.

The deal is expected to close in the first quarter.

Click here to read the full report from Re/code.

—By Kara Swisher, recode.net.

CNBC parent NBCUniversal is an investor in Re/code parent Revere Digital, and the companies have a content-sharing arrangement.

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Re/code

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

Re/code

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.