Yahoo 's decision to maintain the collaboration agreement it had signed with Israeli translation software developer Babylon resulted in its shares soaring.
According to Reuters, Babylon's shares rose 25 percent last Monday after Yahoo confirmed that their partnership would continue.
The four-year contract between the two companies was signed earlier this year. However, last month Yahoo said it had found violations in the agreement. Babylon was quick to say it would take corrective action, which it has successfully done.
"Due to the drastic measures that have been taken, Yahoo does not intend to suspend or cancel the agreement," Babylon said on Monday in a filing with the Tel Aviv Stock Exchange.
Yahoo has already contributed 38 percent of Babylon's quarterly revenue, meaning this deal was particularly profitable for the translation software developer.
