FriendFeed Price Tag Reportedly $47.5 Million in Cash and Stock
More details are emerging around Facebook’s FriendFeed acquisition, which was announced earlier today. While terms of the deal were not announced, Jessica Vascellaro at the WSJ says that Facebook paid about $50 million in cash and stock for the company.
The WSJ says Facebook paid about $15 million in cash and about $32.5 million in Facebook stock (based on the recent $6.5 billion valuation DST put on employee shares) that will vest “over several years.” The vesting schedule is apparently designed to ensure that FriendFeed’s 12 employees, 11 of which are engineers, apply their insights to Facebook’s challenges for a long time to come.
While neither Facebook nor FriendFeed would give specific details as to immediate plans for the FriendFeed team, co-founder Paul Buchheit said earlier that Facebook’s platform efforts were “a large part of the draw for us.”
Facebook VP engineering Mike Schroepfer added that the FriendFeed acquisition could accelerate some of Facebook’s platform initiatives. Facebook’s Open Stream API, part of Facebook Connect, is conceptually similar to some of FriendFeed’s goals in building a social activity stream aggregator.
“There will be more features rolling out over the course of the year like the Open Stream API that should make the Platform more open and make more data available to developers. [The FriendFeed acquisition] could accelerate some of those efforts,” he said.