Nick D'Aloisio, 17, invented the Summly software that automatically reduces lengthy news stories and features to a user-friendly format on an iPhone.
Nick, who lives in South West London, invented the app last year and it has already been downloaded almost a million times.
According to the Daily Mirror, Nick will work for Yahoo at their London offices while studying for three A-levels at Wimbledon's King's College school.
He first had the idea for Summly when he was studying for mock exams at home in 2011 and decided that it was "inefficient and time wasting" to click between various articles on Google.
The cost of the sale to Yahoo has not been disclosed but industry insiders said it would have been between 20 million pounds and 40 million pounds, the paper said.
Because of his age, his fortune will have to be paid into a trust fund, it added.
--ANI (Posted on 26-03-2013)