Our sources have been saying this deal is highly likely since May,
but hasn’t actually been signed yet and could still be disrupted by the
ongoing Microsoft-Yahoo negotiations. Dave Wehner, a Managing Director at investment bank Allen & Co. (he’s the guy who sold Bebo for $850 million to AOL), is representing Powerset in the deal.
Powerset debuted at TechCrunch40 last fall and opened a showcase of its technology to the public just last month.
Powerset has raised around $12.5 million in venture capital, and is rumored to have taken another $8 million or so in convertible debt as bridge financing.