Huge loss for Spinvox investors, but at least the nightmare is over.
Nuance bought its voice to text conversion rival for $66 million in cash and $36.5 million in Nuance common stock. That's
roughly half the $200 investors had ploughed into the Spinvox.
The deal represents some kind of return for Spinvox's backers, after a media storm late in 2009 that revealed human operators, rather than AI, were being used to convert voicemail messages to text. This undermined confidence in Spinvox, which made a loss of £30.2 million on revenues of £2 million in 2009.
"Around the world, the voice-to-text market has experienced tremendous growth over the last year, with a variety of innovative services being delivered by carriers and unified communications providers," said John Pollard, VP of Nuance Voice-to-Text Services. "With SpinVox's robust infrastructure, language support and operational experience, we will broaden the reach and capabilities of our platform."
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