This is a landmark purchase. Facebook made a purchase last week that made the internet landscape stand up and pay attention. They purchased Friendfeed. The previous biggest site used to be MySpace, but Facebook is doing everything right. They have great navigation, user experience, social networking tools, Facebook Connect. Music is the biggest way to grow a social network – its the single solidfying piece of ‘glue’ that keep communities together and growing.
Mashable reported the purchase to be 50 million dollars. This is a huge move on Facebook’s part in their desire to take over Twitter for reported 500 million dollars, 400 million of it which was Facebook Stock. Facebook stock wasn’t seen as a good deal on Twitter’s part, because it isn’t stable or guaranteed, plus Twitter still has ALOT of growth to be had. Microsoft valued Facebook at 15 billion last year, owning 2% of the company, and Facebook is now valued at 3-6 Billion.
Perhaps a good move for Twitter to back out, but now their faced with Friendfeed and Facebook trying to go at them head to head.
Should be interesting for the Music World, and see if Facebook openly buys Reverbnation, and attempts to dominate the Music World.