Another Facebook App Acquisition: Slide buys Favorite Peeps for $60k
Favorite Peeps is the 14th most popular application on Facebook with approximately 1.3 million users and is growing at about 2.3% (30,000 users) per day. The reported acquisition price values each user of the Facebook app at about $0.046, or a low 4.6 cents US.
By comparison, gaming social network and utility Xfire was acquired by Viacom last year for $102 million, or about $25 US for each of its 4 million users at the time. In 2005, Fox Interactive Media acquired MySpace for $580 million, or about $36 per each of its 16 million users at the time of the acquisition. Favorite Peeps’ acquisition price pegs the value of a Facebook application user at between roughly 0.1% and 0.2% of the value of MySpace and Xfire users when those companies were acquired.
Favorite Peeps is the creation of Dennis Rakhamimov, a software engineer at Peter Thiel-funded Palantir Technologies. (Thiel is also an investor and director of Facebook. Also, Slide founder and CEO Max Levchin co-founded Paypal with Thiel and Luke Nosek.) Before joining Panantir, Rakhaminov was a software developer at Microsoft for 3 years after graduating from Columbia in 2004.
Favorite Peeps is a lot like Slide’s own Top Friends application with a tagline or comment for each “BFF” you list. You can also see what your friends have said about you. Another very simple app that got to market early and spread quickly. Not bad for a month’s work, Dennis!