Apple Acquires Chomp to Recreate App Store Search and Discovery [Update: Paid About $50 Million]

[MacRumors]

Apple is acquiring three-year old startup Chomp and plans to use the company's technology and expertise to improve the App Store's search and app discovery technology, according to a report from TechCrunch.

We first covered Chomp in November 2009 to announce their seed funding. Since then, they've grown their scope to include not only iPhone apps, but Android apps as well. In fact, Chomp currently has a deal with Verizon to power all of their Android-based app searches. That relationship, obviously, is going to get a bit awkward with this acquisition.

My understanding is that such deals will remain intact for now but are likely to end once the Chomp team and product transitions over to Apple. The same is likely true for Chomp's stand-alone products.

The terms of the deal haven't been disclosed, but TechCrunch reports that the deal isn't merely about talent -- Apple wants Chomp's technology as well. Chomp has raised more than $2.5 million in funding and apparently all investors are very pleased with the outcome. Chomp's 20 or so employees are reportedly all headed for Apple.

Apple generally prefers to make small to medium size acquisitions of talent and technology, rather than spending huge sums of its $100 billion cash hoard. Earlier this year, Apple paid some $390 million to acquire Israeli flash memory firm Anobit.

Update: Apple has confirmed the purchase to AllThingsD.

Update 2: Apple "paid about $50 million" for Chomp, according to Bloomberg.

Article Link: Apple Acquires Chomp to Recreate App Store Search and Discovery [Update: Paid About $50 Million]

 

[ultravioletfly]

never even heard of Chomp until now. Pretty slick site. I'd been using Appshopper before, as they track the history of app prices.

 

[LondonCentral]

When I read the headline I thought of this;

 

[CrackedButter]

I would only spend the interest acquired from stashing away $100 Billion as well if I could.

 

[AriX]

So Chomp has about 20 employees, or their employees are all 20-somethings?

 

[Peace]

so this is a two fold buy.

help apple and take away a bit from android.

win win

sorry for the formatting/spelling. This touchpad sux

 

[Thares]

So Chomp has about 20 employees, or their employees are all 20-somethings?

They have around 20-29 employees, I guess.

 

[HiRez]

So Chomp has about 20 employees, or their employees are all 20-somethings?

Yeah, it's vague as written. I think they mean "20 or so employees".

 

[dukebound85]

Appshopper is much nicer. I bet Arn would have loved the buyout!

 

[ArtOfWarfare]

The developer in me says: If this makes me more money, I'm all for it.

The consumer in me says: Great! I might actually find the app I want more often!

 

[darbus69]

Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)

must be more than meets (the apple of our) eye!!!

 

[wirelessness]

I'm 'Chomping' at the bit for an improved App Store....sorry couldn't resist.

 

[richman555]

Don't know how true this is but look who is Chomp's marketing advisor.

Just check the about us link at the bottom of their website.

Ashton Kutcher: Marketing Advisor

 

[motoleo]

They. So. Needed. This.

 

[Apple...]

Wirelessly posted (Mozilla/5.0 (iPod; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Mobile/9A405)

So how much did Apple pay?

 

[rdowns]

Appshopper is much nicer. I bet Arn would have loved the buyout!

What are you smoking tonight, duke?

 

[Stridder44]

AWESOME news!

 

[*LTD*]

Apple's quite progressive in their acquisitions: going after fresh, innovative startups. It's all a part of their overall attitude to tech.

 

[iPadPublisher]

So Chomp has about 20 employees, or their employees are all 20-somethings?

Both.

 

[vladi]

$50 mil for app search site? Am I missing something here?

 

[tombo]

$50 mil for app search site? Am I missing something here?

I don't think so. Apple earns so much through Apps in the App Store, if they can just make a small percentage increase through the better searching they could make back their $50m in weeks.

 

[SBlue1]

chomp... somehow i feel the hunger for some sweets when i read this

 

[magenda]

$50 mil for app search site? Am I missing something here?

Not too much for improving the end user experience on finding apps in a chaotic repository.

 

[porcupine8]

Man, I hope so. The App Store is hands-down the most poorly-designed app on my iPad. They've made a few incremental improvements over the past year, but it is desperate need of a rehaul. The only real way to find something that isn't currently featured, brand-new, or a best-seller is to google or ask on forums what others use. Discovering new apps that actually meet your needs in the actual app store is next to impossible.

 

[cajun67]

$50 mil for app search site? Am I missing something here?

I agree.

The strength of the site seems to be the search algorithms, but $50 million? Seriously?

The Ashton Kutcher connection probably helped with the acquisition.