Google Takes Stake in Messaging Startup Symphony Communication Services 

New fundraising round values Symphony at $650 million

Google Inc. plans to invest in a new round of funding for Symphony Communication Services LLC that values the Wall Street-backed messaging company at about $650 million, people familiar with the matter said.

Google’s support adds a technology-industry stalwart to the list of banks and investment firms—such as Goldman Sachs Group Inc.,Morgan Stanley and BlackRock Inc.—that have backed Symphony and its fledgling communications software. Symphony’s latest funding round is expected to close this week, the people said.

Symphony was created as an alternative to Bloomberg LP’s terminals, which have long been a hallmark of trading floors but are viewed as a major cost center for financial firms.

The startup platform initially made its encryption technology a selling point, but attracted regulatory attention from the New York State Department of Financial Services, which was concerned about record-keeping. The agency, New York’s top banking watchdog,reached a deal last month with the four banks it regulates that invested in Symphony over how to keep their records.

The agency said at the time that the agreement with Goldman,Deutsche Bank AG, Credit Suisse Group AG and Bank of New York Mellon Corp. was “to help ensure the banks’ responsible use” of Symphony. The deal requires the platform to keep copies of all electronic communications sent to or from the four banks through Symphony for seven years.

Source: WSJ – Google Takes Stake in Messaging Startup Symphony Communication Services

---