News Startup Ongo Gets $12 Million From Publishers

Associated Press

Ongo, a Silicon Valley startup planning to launch a website for reading and sharing news from multiple sources, says it received an initial round of funding from some of the country's top newspaper publishers.

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The company said Wednesday that The New York Times, Washington Post and Gannett , which publishes USA Today and other newspapers, have collectively invested $12 million. The site is expected to launch this year.

Its another example of the publishing industry's move toward new partnerships and initiatives such as mobile applications on smart phones and fees for reading news online as digital ad sales improve.

In a statement, Ongo founder and CEO Alex Kazim said, "We're gratified three such influential media companies recognize the value of what Ongo is creating."

Kazim, a former eBay executive who helped run the company's Skype division before it was sold, said Ongo will "reflect the many ways consumers prefer to read, organize and share digital news."

The privately held Cupertino, Calif., company offered few other details about the new site, which it plans to launch at