Reasons Why Facebook Acquired FriendFeed

Most of us are pretty shaken by the “sudden” news about the marriage between Facebook and FriendFeed released just hours ago.

FriendFeed has never been able to match Facebook’s popularity with online users; so what exactly did Facebook see in FriendFeed that is worth close to $50 million?

1. A World Class Team

This is definitely the key reason why Facebook acquired FriendFeed. FriendFeed has no lack of talent and in fact, has probably the most admired team in the industry. Just imagine what a group of ex Gmail, Google map and Adsense engineering and product team can do!

2. FriendFeed’s Innovations

When Facebook attempted to acquire Twitter a couple of years back, it has given us a huge hint of what Facebook CEO, Mark Zuckerberg desires. Real time search is what Facebook is lacking in and Twitter was indeed the “perfect” partner to fill its gaps. Sadly, the feelings were not mutual and the deal was not realized. When FriendFeed came along with a real time search technology comparable to Twitter’s, we should have guessed Facebook’s plans. Unsurprisingly on hindsight, according to Ben Parr, Mashable’s Editor, Facebook has been eyeing on FriendFeed since its launch in 2007.

From the technology point of view, FriendFeed innovations has deeply inspired Facebook. Think about it: The new Facebook homepage and its likes and commenting features are all influenced by FriendFeed’s innovations. Imagine how much more the brains of the FriendFeed team can bring to Facebook’s table.

3. A Better Bargain than Twitter

$50 million is all it took to string FriendFeed and Facebook together. Could Facebook have acquired Twitter with the same $50 million offer? I seriously doubt so. Moreover, the marriage seems perfect with the two complementing each other. FriendFeed will provide the innovations while Facebook has more than 250 million users to appreciate them.

FriendFeed can benefit Facebook just as much as Twitter could – all at a better price with both sides happy.

4. Way to Stay Competitive

From personal blogging to social networks and now micro blogging, the social media landscape is changing rapidly. To stay competitive, Faceboook too is looking to have a stronghold in the micro blogging horizon. Even though Facebook has successfully engaged its users through its army of applications, it realizes that it might be missing out on a big piece of pie – social search.