Facebook Settles For FriendFeed After Twitter Negotiations Dry Out
- Facebook has acquired FriendFeed! No details yet on the acquisition price, but we are guessing somewhere in the $50M range. It’s not quite what Facebook wanted (they original tried to nab Twitter last month for a reported $500M only to be turned down). FriendFeed had been showing steady growth over the last year up until Twitter ‘really took off’ in the past quarter, continuing to grow at an impressive 20% a month.
- It’s clearly a good match. Over the last year or so, Facebook has “borrowed” quite a few of features that FriendFeed popularized, including the ‘Like’ feature and an emphasis on real-time news updates. Facebook has already built out some of FriendFeed’s functionality so there is some overlap, but there are still numerous ways FriendFeed beats out Facebook’s News Feed setup. FriendFeed works a little bit more like a forum, where people can comment on status updates (can’t do this on Twitter), and new activity pushes items back to the top (can’t do this on FB or Twitter).
- Facebook really scored by retaining the founding team which consists of an all-star cast of ex-Googlers such as Paul Buchheit, who is responsible for creating Gmail, pioneering some of Google’s early (and incredibly lucrative) advertising products, and coining Google’s “Don’t be evil” motto.