The details: Facebook spent $68 million on acquisitions last year

Facebook revealed that it spent $68 million in cash and stock on acquisitions last year, according to its filing for an initial public offering. The company said all of the deals were not material.

Here’s more details on how much Facebook has paid for companies in stock. This excludes cash-based compensation and other retention bonuses. We don’t know which companies Facebook is actually referring to in its filing because the company doesn’t explicitly say, but we put our best guesses here based on when deal announcements were made.

The numbers seem mostly consistent with what we’ve heard — that the amount of equity Facebook offers for talent has gotten smaller over time as secondary markets have more aggressively priced the value of Facebook’s shares. Facebook now tends to offer Class A shares instead of Class B shares. (Class A shares have one-tenth the voting power of Class B shares.)

Companies that are closely connected to Facebook’s founders or early employees, like Drop.io, also seem to get far better terms than other startups do. That said, Facebook has told us that it is starting to look at bigger deals and raising $5 billion in capital might be just the kick that the company needs to go for more than talent.

In Facebook’s most recent internal valuation on December 31, the value of a Class B share was found to be $29.73. A single Class B share can be converted into a Class A share. We calculated the current value of each deal based on the number of shares multiplied by the December 31 valuation.

  • “On August 14, 2009, we issued 11,052,955 shares of our Class B common stock as consideration to ten individuals and one entity in connection with our acquisition of all the outstanding shares of a company.” This might be FriendFeed, which Facebook reportedly acquired for $50 million. Co-founder Bret Taylor later went on to be chief technology officer. Current value: $328,604,352
  • “On May 18, 2010, we issued 3,625,000 shares of our Class B common stock as consideration to a company in connection with our purchase of patents from the company.” This might be the deal to buy the Friendster patents. Current value: $107,771,250
  • “On June 16, 2010, we issued 238,000 shares of our Class B common stock as consideration to a company in connection with our purchase of certain assets from the company.” Unclear. It could be Nextstop, whose co-founder Carl Sjogreen is now a director of product management at FacebookCurrent value: $7,075,740
  • “On July 7, 2010, we issued 590,900 shares of our Class B common stock as consideration to a company in connection with our purchase of certain assets from the company.” Again. Unclear. Could be Nextstop or Hot Potato. Or the higher price could be for Chai Labs, whose co-founder Gokul Rajaram is now leading the charge on advertising. He was nicknamed the Godfather of Adsense. Current value: $17,567,457
  • “On August 18, 2010, we issued 289,350 shares of our Class B common stock as consideration to two individuals in connection with our acquisition of all the outstanding shares of a company.” Could be Hot Potato, which was founded by Justin Shaffer, who later worked on Groups and Places. Current value: $8,602,375
  • “On October 29, 2010, we issued 1,309,284 shares of our Class B common stock as consideration to a company in connection with our purchase of certain assets from the company.” Probably Drop.io, which saw its chief executive and longtime friend of Mark Zuckerberg, Sam Lessin start at Facebook. He headed up the Timeline overhaul. Current value: $38,925,013
  • “On November 12, 2010, we issued 350,000 shares of our Class B common stock as consideration to a company in connection with our purchase of certain assets from the company.” This might be for Walletin, whose co-founder Cory Ondrejka was a chief technology officer at Linden Lab. He’s now leading the charge on building a robust HTML5 platform that will lead Facebook beyond the app era largely ruled by Apple. Current value: $10,405,500
  • “On December 15, 2010, we issued 1,030,000 shares of our Class B common stock as consideration to two individuals in connection with our acquisition of all the outstanding shares of a company.” This could be for Rel8tion, which was a mobile advertising startup. Current value: $30,621,900
  • “On February 28, 2011, we issued 681,357 shares of our Class A common stock as consideration to a company in connection with our purchase of certain assets from the company.” This might be for Beluga, the group messaging startup founded by former Google product managers that is now powering Facebook’s standalone app Messenger. Current value: $20,256,744
  • “On April 5, 2011, we issued 1,659,430 shares of our Class A common stock as consideration to 13 individuals and six entities in connection with our acquisition of all the outstanding shares of a company.” This could have also been for Snaptu, given the high individual count on this deal. Snaptu was said to be one of Facebook’s more expensive acquisitions. It gave a boost to the company’s ability to build apps for the long-tail of feature phones, which Facebook is relying on to fuel its next era of growth in emerging markets. Current value: $49,334,854
  • “On August 1, 2011, we issued 75,426 shares of our Class A common stock as consideration to three individuals in connection with our acquisition of all the outstanding shares of a company.” This could be for Push Pop Press, which had some talented designers from Apple. Or it could be Friend.ly, whose team is now working on growth. Or it could have been for Daytum, the company co-founded by Nicholas Feltron, who famously turned his life into a rich infographic. He played a very prominent role at the last f8 when the company rolled out Timeline. Current value: $2,242,414
  • “On October 7, 2011, we issued 360,883 shares of our Class A common stock as consideration to 21 individuals and eight entities in connection with our acquisition of all the outstanding shares of a company.” This could be the Gowalla acquisition. The number of participants here seems to be a proxy for the many investors that were in on the location-sharing mobile app. Current value: $10,729,051
  • “On October 10, 2011, we issued 183,750 shares of our Class B common stock as consideration to a company for a license of certain technology from the company.” It could be WhoGlue, which Facebook bought but did not hire talent from. Current value: $5,462,887
  • “On January 3, 2012, we issued 90,000 shares of our Class A common stock as consideration to four individuals and 13 entities in connection with our purchase of certain assets from a company.” Unknown. Current value: $2,675,700
  • “On February 1, 2012, we issued 212,250 shares of our Class A common stock as partial consideration to two entities in connection with our purchase of certain assets from a company.” Unknown. Current value: $6,310,193

Marketing with Facebook Insights

Mediabistro Course

Marketing with Facebook Insights

Starting October 2, use Facebook’s analytics tool track and optimize your marketing efforts! Taught by the group marketing manager of social media at Microsoft/BingAds, Geoffrey Colon will show you how to measure key performance indicators and make your data actionable. Register now!

 

Leave a Reply

4 Responses to “The details: Facebook spent $68 million on acquisitions last year”

  1. Facebook Could Buy Netflix, Mobile Assets, Leverage Big Data - Fundamental Technology Partners Inc. says:

    [...] believes Facebook might use its new capital to acquire larger companies than it has in the past. Facebook spent $68 million on small acquisitions in 2011, acquiring companies such as Beluga, Snaptu and Gowalla for engineering [...]

  2. Facebook Could Buy Netflix, Mobile Assets, Leverage Big Data » Techno Capital says:

    [...] believes Facebook might use its new capital to acquire larger companies than it has in the past. Facebook spent $68 million on small acquisitions in 2011, acquiring companies such as Beluga, Snaptu and Gowalla for engineering [...]

  3. Who’s Ready for the (Heaven Forbid) Social Networking Patent Wars? - Liz Gannes - Social - AllThingsD says:

    [...] At Facebook’s most recent internal valuation, the stock alone spent on the Friendster patent deal is now worth more than $100 million. [...]

  4. Light Reading Mobile - 4G/LTE - Facebook Buys Again! - Telecom News Analysis says:

    [...] sharing startup Instagram. Facebook spent $68 million on acquisitions last year, according to the Inside Facebook blog. Why this matters Facebook is buying both mobile users and talent with these latest [...]

Get the latest news in your inbox
interested in advertising with inside facebook?

Social Media Jobs
of the Day

Marketing Associate

Wainscot Media
Montvale, NJ

Assistant/Associate Professor - Social Media

SYRACUSE UNIVERSITY
Syracuse, NY

Campaign Manager

Interactive One
New York, NY

Digital Marketing Director

McMurry/TMG
Phoenix, AZ

Social Media and Communications Assistant

Carnegie Endowment for International Peace
Washington, DC

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us