Ever since online media companies like Google, Yahoo and Facebook started to come into their own as industry powerhouses, there’s been a spree of merger and acquisitions. A new infographic from WhoIsHostingThis.com explored Facebook’s acquisition history, and why it can be beneficial for both companies involved.
A prime example of benefit for both companies was Facebook’s acquisition of messaging service WhatsApp. WhatsApp got to retain autonomy and continue growing at a rate of more than one million new signups per day. Facebook got at least partial access to WhatsApp’s 500 million monthly active users, and WhatsApp CEO Jan Koum joined the Facebook board of directors, giving both Koum and the board a fresh perspective.
A big part of that acquisition is that Facebook gets access to more users and technological innovation. In fact, the acquisitions of Face.com, Parakey, Octazen, Sharegrove and Oculus VR were primarily for technology expansion. The acquisitions of Branch, Hot Studio and FriendFeed were talent acquisitions, which brings diverse expertise to Facebook, which has undoubtedly helped its growth.
But Facebook isn’t the only beneficiary of these acquisitions. Being acquired can open new advantages for a burgeoning startup. The huge influx of funding is often used to finance development, product diversification and increase brand recognition. Of course, being associated with Facebook isn’t universally positive.
To see just what Facebook has paid for these smaller companies, or to understand why those numbers aren’t what they seem, view the infographic below: