Babylon Jumps Most in Four Months on Google : Tel Aviv MoverDavid Wainer and Shoshanna Solomon
Babylon Ltd. gained the most in more than four months as Google Inc.’s review of the translation software maker’s user policies found no faults, easing concern that a key source of revenue would be jeopardized.
Shares of the company, which gets most of its advertising sharing revenue from agreements with Google, jumped 6.5 percent, the most since Jan. 28, at the close in Tel Aviv. Or-Yehuda, Israel-based Babylon’s stock was the biggest gainer in percentage terms on the TA-100 Index, which declined 0.1 percent. Babylon advanced 4.2 percent this month.
“This brings some security in the continued relations between Babylon and Google, their biggest client,” Dov Rozenberg, an analyst at Clal Finance Batucha Brokerage Ltd. in Tel Aviv, said in a phone interview.
Babylon’s stock, which more than doubled last year, fell 25 percent in the two months ending March 31 on concern that a change in the company’s relationship with Google would hurt revenue. Sales from the company’s Google partnership dropped to 66 percent at the end of the first quarter from 84 percent at the end last year.
Babylon signed a four-year accord with Yahoo! Inc. to share revenue from online advertising, including mobile Internet, in an effort to diversify sources of revenue, it said last month. The company said in November it will seek to raise $115 million in an initial public offering in the U.S.