Facebook is branching out to new areas such as e-commerce by exploring its own network for potential acquisitions.
The social network has more than 900 million users, a number that hasn’t escaped developers. Millions of apps such as social game maker Zynga got their start on Facebook.
“But as recent acquisitions of mobile apps Instagram and Karma show, Facebook is considering snapping up companies on its own platform — turning it into a potential competitor for other app developers,” reports the Wall Street Journal.
“How does it take advantage of commercial opportunities in its own ecosystem, without scaring off software developers?” asks the article.
Facebook is particularly interested in new approaches to monetizing its mobile site, although some analysts warn that acquiring companies that build on its platform could be a strategic error.
“I sure hope Facebook stays a platform and allows developers like us to be successful,” explains Hjalmar Windbladh, founder of gift-giving app Wrapp. “If you jeopardize that, your time as a platform has passed.”
“So far this year, Facebook has made 11 acquisitions, shelling out more than $1.5 billion for deals for which it has publicly disclosed terms, up from just $68 million last year,” notes WSJ. “The company has a lot more money to spend after raising $6.8 billion in its IPO in May, giving it about $11 billion in cash plus access to a $5 billion credit line.”
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