Tuesday, August 11, 2009

Facebook Acquires Start-Up FriendFeed - WSJ.com

Social software market consolidation

Facebook paid nearly $50 million for the company, in a combination cash and stock offer, according to people familiar with the matter. The company paid roughly $15 million in cash, with the rest in Facebook stock that vests over several years and would be worth roughly $32.5 million based on the $6.5 billion common valuation an investor recently placed on the company. A Facebook spokesman declined to comment.

FriendFeed was founded in 2007 by four former Google Inc. software engineers as a way for users to keep track of their friends' activities across social-media services -- like Facebook and Twitter -- at the same time. But it never expanded far beyond a core group of Internet professionals, particularly as other services like Facebook made it easier for users to share their articles, photos and notes across multiple social-media services.

Facebook Acquires Start-Up FriendFeed - WSJ.com

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