Facebook buys up web search expert

Published on Tuesday 11 August 2009 21:32

FACEBOOK looks set to take the battle for online traffic straight to competitors such as Twitter and even search giant Google after snapping up a social networking site praised for its "real time" search engine.

FriendFeed – a Silicon Valley technology start up with only 12 staff – won plaudits for its search facility, which allows users to read updates on their friends activities and share content such as video and pictures.

While Google's searches are static, based on snapshots of the internet, FriendFeed's system allows queries to be made in real time, leading Google founder Larry Page to praise such websites and acknowledge that his own site had fallen behind.

Facebook reportedly paid $50 million (30m) in cash and shares for FriendFeed, which analysts had expected would be bought by Google or even Twitter, one of its main rivals.

As well as capitalising on the search facility, Facebook will also look to incorporate some of FriendFeed's other tools, which allow users to bring together pictures, videos and other content from social networking sites.

The deal comes a year after Facebook's failed attempt to buy Twitter, the "micro-blogging" website made popular by celebrities including comedian Stephen Fry and Scottish tennis star Andy Murray.

FriendFeed was set up in 2007 by Bret Taylor and Jim Norris, who helped build the Google Maps application, and Paul Buchheit and Sanjeev Singh, part of the software team behind Google's Gmail programme.

Writing on his FriendFeed blog, Taylor joked: "We are happy to announce that Facebook has acquired FriendFeed. As my mom explained to me, when two companies love each other very much, they form a structured investment vehicle."

Tino Nombro, managing director of Edinburgh-based internet marketing agency Ambergreen, said: "Facebook wants to stop people disappearing from its site to use Twitter.

"There's still no proven golden rule for how to make money out of social media websites – whether it will be through payments to use their services or through traditional advertising.

"The question is still there – where will the income come from at the end of the day?"

Facebook has about 250 million active users, while Twitter has 45 million and FriendFeed has about 46,000.