Facebook plans on doubling its acquisition next year and expects to purchase as many as 15 different companies in its attempt to absorb new ideas and technology.
This is all according to statements made by Michael Brown, the corporate development manager at Facebook. He gave a seminar in San Francisco last week titled “Startup Exit Seminar: Early Stage M&A.”
During the seminar, he touched on the properties that they had acquired in 2010. They were rounded up in the following statement:
“Altogether, Facebook announced eight acquisitions in 2010, including Hot Potato; Drop.io (another RRE Ventures-backed company snapped up for about $10 million); Divvyshot (a photo management tech company that grew out of Y Combinator and was bought for an undisclosed amount); Chai Labs (acquired for $10 million); and Nextstop (bought for $2.5 million). Facebook’s largest purchase this year was the $40 million it paid to take ownership of social networking patents from Friendster.”
What is very interesting about the properties is that none of them are still open for business. Facebook will come in, take over a company, take what it needs and then close the company down to its users.
The only company that is still open is a 2009 acquisition called FriendFeed. It’s used by Facebook as a test-bed for features it brings to the main Facebook. Therefore, anyone who uses FriendFeed gets to experiment with the initial Facebook offerings before the main population gets to play around with it.
For example, Facebook announced that its new user registration technology was going very well. The company referenced how well it had been doing on FriendFeed. Because of this, they’re bound to bring it to Facebook.
However, this also presents a problem to all of those who love startups. Anyone who uses these startups will probably not use them for long because Facebook will close it down. Anyone looking to start one should do it now because Facebook might just buy you.
For a company that has grown exponentially over the previous year, it’s looking to expand and add new technology at an even faster pace.