JERUSALEM, Oct 30 (Reuters) - Israeli translation softwareprovider Babylon saw its shares plunge more than 60percent on Wednesday after announcing that Google didnot plan to renew a cooperation agreement between the twocompanies.
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 $45million.
Babylon's stock price had already been suffering since thecompany announced last week that Yahoo, which provided32 percent of revenue in the same period, had found faults inthe way its own agreement was being handled.
"We are still assessing the situation and examining theimplications and the company's operation alternatives," CEO AlonCarmeli said in a statement to the Tel Aviv Stock Exchange.
"It is too early to give one estimate or another on the fullimpact of the events and the course of action Babylon willchoose to take," he said.
Babylon's shares fell 63 percent to 7.33 shekels, loweringits market value to 363 million shekels ($103 million) from 981million on Tuesday.
Google decided not to renew the contract after receiving alarge number of complaints that Babylon's software did not workwell with the Google Chrome browser, Babylon said, adding thatthe internet giant could rethink the decision in 2014.
- Investment & Company Information