Monday, August 10, 2009

Facebook Buys FriendFeed

Facebook and FriendFeed have both confirmed that FriendFeed has accepted Facebook's offer to buy the company. The acquisition is likely Facebook's second choice, Twitter being the first. Facebook almost certainly got a better deal then it would have if Twitter was for sale, which it has given no indication that it is. The combo represent a real threat to Twitter.

The deal was for $50 million; "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" (

"We are happy to announce that Facebook has acquired FriendFeed. As my mom explained to me, when two companies love each other very much, they form a structured investment vehicle..."

"Facebook today announced that it has agreed to acquire FriendFeed, the innovative service for sharing online. As part of the agreement, all FriendFeed employees will join Facebook and FriendFeed’s four founders will hold senior roles on Facebook’s engineering and product teams."

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