There's been a lot of news today about Facebook and its IPO and here is another. Facebook has just completed its first acquisition after becoming a publicly traded company. The mobile commerce startup Karma has been acquired by Facebook. Karma specializes in apps for gifting friends and family. The acquisition sees 16 employees joining Facebook.
The terms of the deal are undisclosed as of now. The acquisition should help Facebook monetize its app and mobile offerings, something its admittedly weak in. Facebook said in a statement: "We've been really impressed with the Karma team and all they accomplished in such a short time. This acquisition combines Karma's passion and innovative mobile app with Facebook's platform to help people connect and share in new and meaningful ways."
Karma also posted on its own blog:
We founded Karma with the goal of adding the sentiment and meaning back into gift giving. That's what Karma is all about. That's what the Karma team set out to achieve.
Over the last year, we've built a new e-commerce platform from the ground up. We've been honored to partner with amazing brands to create a curated catalog of products. We made those products instantly giftable in a brand new way. And we harnessed the power of Facebook's social network to ensure you never miss a chance to show someone you care. The phenomenal response and feedback we've heard from customers has more than exceeded our expectations. And we're just getting started - today we take social gifting to the next level.
We're thrilled to announce that Karma has been acquired by Facebook. The service that Karma provides will continue to operate in full force. By combining the incredible passion of our community with Facebook's platform we can delight users in new and meaningful ways. As we say ...only good things will follow.
Simply put, together we can celebrate life's important moments in ways we could not before. A word of heartfelt thanks to our partners, customers, and our incredible team for helping us share Karma with so many people.
Karma Co-founders Lee & Ben
This acquisition makes sense as Facebook really needs to start making money off of its mobile offerings. More and more users are ditching traditional computer access for mobile access of the social network, so they are losing ad revenue from the traditional site. Karma and its founders should be able to help monetize Facebook's mobile offerings better than Facebook has.