JERUSALEM Oct 30 Israeli translation software
provider Babylon saw its shares plunge more than 60
percent on Wednesday after announcing that Google did
not plan to renew a cooperation agreement between the two
The internet advertisement revenue-sharing deal with Google,
set to end Nov. 30, was a major source of income for Babylon,
accounting for 43 percent of its second-quarter revenue of $45
Babylon's stock price had already been suffering since the
company announced last week that Yahoo, which provided
32 percent of revenue in the same period, had found faults in
the way its own agreement was being handled.
"We are still assessing the situation and examining the
implications and the company's operation alternatives," CEO Alon
Carmeli said in a statement to the Tel Aviv Stock Exchange.
"It is too early to give one estimate or another on the full
impact of the events and the course of action Babylon will
choose to take," he said.
Babylon's shares fell 63 percent to 7.33 shekels, lowering
its market value to 363 million shekels ($103 million) from 981
million on Tuesday.
Google decided not to renew the contract after receiving a
large number of complaints that Babylon's software did not work
well with the Google Chrome browser, Babylon said, adding that
the internet giant could rethink the decision in 2014.