- Associated Press - Tuesday, August 31, 2010

PALO ALTO, CALIF. (AP) - Internet company AOL Inc. has purchased location-based social networking service Rally Up for an undisclosed sum.

New York-based AOL said Tuesday that Rally Up’s mobile applications will add to its consumer applications unit. The company will join AOL in its new office in Palo Alto, Calif. Rally Up will work with AOL’s vice president of mobile, David Temkin, on creating products that are first released as mobile applications, AOL said.

Rally Up started in 2009. It offers a social networking app by the same name for Apple Inc.’s iPhone and iPad, and has submitted another application to Apple’s App Store called FacePlant that is meant to let iPhone users see friends and start a video chat over the iPhone’s FaceTime app.

AOL shares rose 5 cents to finish regular trading at $22.22.

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