Boston, MA 01/14/2013 (wallstreetpr) – Facebook Inc (NASDAQ:FB) continues its trend of acquiring startup even after failing to sign a deal with photo-sharing app Snapchat. It recently sealed a deal with India-based Little Eye Labs whose team will now relocate to Menlo Park. And this time around the company has entered into what is called acqui-hire with the founders of social conversation app Branch Media.
The financial details about the latest acquisition have been withheld; however various media reports place it around $15 million. Branch comprise a 10-person team that will remain based in New York City where Facebook Inc (NASDAQ:FB) is establishing a Conversations group.
The dynamic and sometimes risk nature of the social networking business is pushing Facebook Inc (NASDAQ:FB) to work towards mobile access and real-time public conversations. This explains why the company recently introduced hashtags which were foreign to its network before last June. The hashtages and real-time conversations feature dominantly in the platform of its rival Twitter Inc (NYSE:TWTR) currently dominates.
The deal
In this latest startup deal, Facebook Inc (NASDAQ:FB) will be acquiring the talent of the team that builds social conversation apps to help create Facebook scale conversation. This means that Branch and Potluck will continue to operate outside Facebook.
In other words, Facebook Inc (NASDAQ:FB) is only buying the talent but not the technology as it has done with other recent startup acquisitions.
That Josh Miller, the chief executive of the Branch has agreed to a deal with Facebook Inc (NASDAQ:FB), reveals a change of heart. The developer was recently bearish on the company, but changed his position to support the company’s prospects in social network.
The game plan
Facebook Inc (NASDAQ:FB) failed to sign a deal with Snapchat after the latter refused its $3 billion acquisition offer. We cannot rule chances of the two companies entering a marriage some day, however, it is now clear that Facebook is keen on making Snapchat relevant.
Facebook Inc (NASDAQ:FB) just made improve to Instagram which makes it more or less like Snapchat and it continues to acquire startups which are expected to elevate its position in mobile and public conversation. In other words, Facebook Inc (NASDAQ:FB) believes it can build Snapchat equivalent for its teen users without Snapchat itself.
