Facebook Snaps Up Apps in Its Own Backyard
As Facebook tries to diversify its revenue stream by branching into e-commerce, the company has increasingly begun mining its own platform for acquisitions, according to The Wall Street Journal.
The company, which hosts millions of apps, has recently started buying up more of them. This year, Facebook made five deals (including the purchases of Tagtile, a customer-loyalty service, and Karma, an app for social gift-giving) that demonstrate its desire to open new e-commerce business opportunities and evolve into a profit-maximizing enterprise, says The Journal.
Besides e-commerce, Facebook also plans to seek out purchases that could improve its notoriously weak mobile app, as evidenced by the $1 billion Instagram deal. Finding ways to make money from mobile, which currently offers only limited advertising opportunities, is a high priority for Facebook, according to the paper.
Although Facebook's recent interest in acquisitions may be an incentive for some entrepreneurs, The Journal says that the social network also risks alienating developers by turning itself into a competitor.