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	<title>Just Another 24 Hours &#187; Mosh</title>
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		<title>Facebook consolidates with acquisition of FriendFeed</title>
		<link>http://justanother24hours.com/social-media/facebook-consolidates-with-acquisition-of-friendfeed/</link>
		<comments>http://justanother24hours.com/social-media/facebook-consolidates-with-acquisition-of-friendfeed/#comments</comments>
		<pubDate>Tue, 11 Aug 2009 11:00:35 +0000</pubDate>
		<dc:creator>Daniel Young</dc:creator>
				<category><![CDATA[Social media]]></category>
		<category><![CDATA[facebook]]></category>
		<category><![CDATA[FourSquare]]></category>
		<category><![CDATA[FriendFeed]]></category>
		<category><![CDATA[Mosh]]></category>
		<category><![CDATA[myspace]]></category>
		<category><![CDATA[Posterous]]></category>
		<category><![CDATA[SocialNetworking]]></category>
		<category><![CDATA[Twine]]></category>
		<category><![CDATA[twitter]]></category>

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		<description><![CDATA[One loss making company acquired another on Monday when Facebook shelled out $50m in cash and stock for the sharing service and social network, FriendFeed. Facebook is valued at $6.5bn.   ]]></description>
			<content:encoded><![CDATA[<p style="text-align: justify;">One loss making company acquired another on Monday when Facebook shelled out <a title="50m in cash and stock" href="http://www.techcrunch.com/2009/08/10/the-cost-of-friendfeed-roughly-50-million-in-cash-and-stock/" target="_blank">$50m in cash and stock</a> for the sharing service and social network, FriendFeed. Facebook is <a title="Facebook valuation " href="http://www.techcrunch.com/2009/07/13/dst-to-buy-up-to-100-million-in-facebook-employee-stock/" target="_blank">valued at $6.5bn</a>.</p>
<p style="text-align: justify;"><a title="Facebook announces  " href="http://www.facebook.com/home.php#/press/releases.php?p=116581" target="_blank">Facebook announcement.</a></p>
<p style="text-align: justify;">FriendFeed has made little impact on the mainstream but it does appeal to the geek audience, including <a title="FriendFeed contactdjy" href="http://friendfeed.com/contactdjy" target="_blank">myself</a>. In my mind, FriendFeed works best as an aggregator as opposed to a destination for content &#8211; its closer to the failed Facebook <a title="Facebook tries to acquire Twitter" href="http://www.techcrunch.com/2008/11/24/acquisition-dance-between-facebook-and-twitter-over-for-now/" target="_blank">acqusition target, </a>Twitter. The FriendFeed interface is very simplistic unlike the increasingly congested and hectic Facebook.</p>
<p style="text-align: justify;">The user bases are very different, which suggests primary motivation is to absorb talent and expertise (particularly in the area of real-time services) rather than eliminate a competitor &#8211; FriendFeed traffic has stagnated for most of the year. The co-founders of FriendFeed and staff will join Facebook&#8217;s engineering team.</p>
<p style="text-align: justify;">I think its unlikely that Facebook will continue to support FriendFeed as a separate entity given the fact that both sites are burning rather than generating cash at this point in time. It makes sense for Facebook to consolidate but expect a lot of user angst from one or both communities when the integration process begins.</p>
<p style="text-align: justify;">This is very early days for the social networking sector as a whole. Will Facebook still hold the lead when the industry begins to mature (whenever that might be but a fair few years from now)? Who knows? It will be interesting to see how this all plays out, not least in relation to the monetization and data privacy issues &#8211; the elephants in the room for this industry sector. This space won&#8217;t stand still for long as evidenced by a wide range of social networking services out there nipping at the heels of Facebook.</p>
<p style="text-align: justify;">Check out <a title="Twine" href="http://www.twine.com/" target="_blank">Twine</a>, <a title="FourSquare" href="http://playfoursquare.com/" target="_blank">FourSquare</a>, <a href="www.posterous.com">Posterous</a>, <a title="Yahoo Mosh" href="http://www.techcrunch.com/2007/07/08/mosh-yahoos-new-social-network-initiative/" target="_blank">Yahoo Mosh</a> and <a title="myspace" href="http://www.myspace.com" target="_blank">MySpace </a>(just joking).</p>
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