ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the December 2007 issue


AOL buys Israeli search technology company Yedda

Time Warner Inc. (NYSE:YWX) subsidiary AOL has acquired Israeli search technology start-up Nedda Inc.. The size of the deal was not disclosed.

Yedda is a web 2.0 company that has developed a semantic search engine that can analyze questions and queries and invite the most suited surfers to share their subjective knowledge derived from their experience and know-how to answer the questions on Yedda's website and the sites of affiliated companies. Yedda's search engine differs from regular text-based search engines.

Yedda was founded in Kfar Malal in 2006. It will remain in place as a subsidiary of AOL, which will integrate Yedda's technology in AOL websites, the largest Internet community in the world. Yedda will also continue to seek partnerships with other content sites and distributors around the world.

Yedda CEO Avichay Nissenbaum said that when the deal is completed, AOL's 100 million-strong Internet community would turn Yedda into one of the largest personal knowledge centers in the world and a primary source for surfers seeking the experience and know-how of others.

Yedda's 20 employees have developed a semantic search engine that can analyze questions and requests. The site invites users to post questions, and then asks others to answer the questions or match them to existing answers.

The site also supplies quality ratings for content. This is the first Israeli Web 2.0 technology exit.

Yedda has raised $2.5 million since its founding in 2005.Those funds came from private investors and Genesis Partners. The company will remain independent after its purchase by AOL, functioning as a subsidiary working with AOL's search division, communities and instant-messaging group.



Reprinted from the Israel High-Tech & Investment Report December 2007

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