AOL buys contextual blog service Sphere

Tue Apr 15 2008, 17:36 PM

AOL has acquired blog search and display platform, Sphere, for an undisclosed amount. The deal, which TechCrunch estimates to be worth USD25m, establishes Sphere as a wholly-owned AOL subsidiary and part of AOL's programming division. The deal builds on existing ties between the two companies. Sphere worked in the past with AOL to provide widget technology for AOL News and for personalised homepage site MyAOL.

Deal Details

AOL's COO Ron Grant says the deal will allow AOL to distribute content on Sphere's third-party network and gain advertising inventory.

San Francisco-based Sphere was founded in 2005 as a blog search engine. With competition from similar rivals, including Google Blog Search, the company developed a widget which allows bloggers and publishers to intelligently link to related blog sites. The firm raised USD3.75m in venture funding in May 2006 and claims its network has more than 50,000 content publishers and blogs.

Writing in a blog post, Sphere founder Tony Conrad said that Sphere's business approach will remain the same. He says: "AOL is doing what great, sustainable business do every so often – they’re reinventing themselves. As the business model of the oldest and one of the biggest internet businesses evolves, Sphere becomes an important piece of their strategy."