Facebook to Buy Israeli Start-Up


World's largest Internet social network to pay up to $70 million for Snaptu, an application developer for mobile devices that are less sophisticated than smartphones


By: CALCALIST  
Published: March 21st 2011
in Economics » Israel

Snaptu

Facebook has agreed to buy Snaptu, an Israeli application developer for mobile devices that are less sophisticated than smartphones, as the world's largest Internet social network focuses on expanding its mobile services.

 

Facebook will pay up to $70 million for Snaptu, according to the business newspaper Calcalist.

 

Snaptu confirmed the deal, which is expected to close in a few weeks, on its website on Sunday.

 

CEO Ran Makavy addressed the possibility of Snaptu being bought in an interview to Calcalist about two months ago. "The company and its service are going to grow significantly, and we're going to recruit quite a few employees. I believe we must build a big and profitable company which makes a lot of money.

 

"Will we sell the company on the way or not? It depends. If we get a very attractive offer can't resist the temptation, we'll be happy to. But we are not building a company in order to sell it. The business potential here is so big that it would be wrong not to have high expectations."

 

Facebook did not immediately respond to an email seeking a comment.

 

The site has been increasingly focusing on building up its mobile phone services for its 500-million-plus member online social network, and is in the market for more deals. Last week, Facebook said it had hired a member of Google Inc's corporate development team to lead its fledgling merger and acquisition efforts.

 

Snaptu, founded in 2007, develops applications for feature phones, which have fewer capabilities than smartphones. The company helped develop a feature phone Facebook app earlier this year.

 

This article first appeared on Ynet and is reprinted with permission.



Related articles: (Snaptu, Facebook, )




Share with friends Print this page Read later Recommend 0 times