Facebook Inc. agreed to pay up to $30 million for Bloomsbury AI Ltd. with the aim to strengthen the ability to analyze documents automatically, according to anonymous persons familiar with the matter who were quoted by TechCrunch on Monday. The low end of the price for the London startup could be $23 million, according to some of the sources.
The target firm developed natural language processing (NLP) solutions, which will help the social media operator’s fight against fake news, the management of content and moderation, the article adds. The platform is based on an application programming interface (API) known as Cape. Bloomsbury was backed by technology investment hub Entrepreneur First Operations Ltd., or EF. The startup’s funding also came from Fly.VC, Seedcamp, IQ Capital, UCL Technology Fund and state-controlled London Co-investment Fund.
The transaction involves equity, said several people in the room, where one leak indicates investors would get $5.5 million in cash, while that the founders are getting $17.5 million in Facebook’s restricted stock.