This is one of the biggest tech news of the week. FriendFreed a lifestream service, i have been using nearly from day 1, has been acquired by Facebook. Tons of things are being written here and there. Here are my 10 short random toughts
- FriendFeed is a Xoopit not a Zappos. Could it have been a Zappos? i don't think so. In spite of an amazing product and massive coverage they never reached more than 1m users. With no clear revenue model and unlike Twitter a very ppor ecosystem of developpers and apps.
- Acquisition price? Before WSJ published the info i twitted yesterday that the price tag was sub 100m USD but not far. With a premium mostly paid in stock. Seems to be the case (around 50m USD)
- Facebook acquired a great technology and amazing talents (they did the same with Parakey than became Facebook iPhone app). Friendfeed news feed is by far the best on the market.
- Benchmark is both an investor in both Twitter and FriendFeed. Facebook tried to acquire Twitter for 500m USD in stocks and failed (that was before Benchmark invested). I can't imagine that this episode did not help Benchmark in making the deal happening. including being aware of the terms. I can't also imagine that Benchmark did not have some conflicts of interest since both services have a strong overlap (both a re news stream)
- From a VC return point of view Friendfeed should be considererd as a failure. But it's not. Bencharmk invested 5m a year ago probably for 20%. They got back a year later 10/15m USD. Mostly in Facebook stock potentially worth much more.
- Soon i'll be visiting 1 site less. Would not make sense for Facebook to keep Friendfeed alive. Until today i was visiting both every day.
- Friendfeed is a name i never like for a company: but a great name for the new Facebook "News Feed" (a name i never liked either)
- If FriendFeed was an israeli company not one singly VC would have put money on this company. Me included. Actually i saw a couple of startups in this field no one has put money on them.
- TO all startups: it is possible to build a better product than giants if you decide to go head to head against them. But you have to be REALLY good at it and be aware that the upside can be limited
- Everyone says that Facebook acquired a real time search engine. They did not. Friendfeed search engine is not good enough. And it only indexes the feed in their system. A real time search engine should index the whole web and provide the right filters to put out the noise
bonus 2: given the amazing number of tweets on the matter i don't understand why friendfeed does not appear on top of the top 10 trending topics. Any idea?
pic: mark zuckerberg and Friendfeed founders..apparently happy
update: wow, i am already #2 link on top of Techmeme with this post!