Home  › Social › Social Media
Two people shaking hands

Facebook Buys Branch for Reported $15M in Effort to Boost News Feed Quality

  |  January 13, 2014   |  Comments

Facebook is starting its first ever operations in New York after purchasing conversation startup, Branch, for a reported $15 million.

Facebook meant business when it announced the shift towards quality information in newsfeeds back in December: today, the news broke that the social network bought two mobile conversation apps, New York based Branch and its sister startup Potluck.

Exact terms of the transaction were not available but news reports from The Verge and Recode citing sources close to the deal had the price tag at a reported $15 million.

Branch's aim is to start and nourish high-quality conversations between like-minded people (read: in need of consistent and rich conversations). Those conversations can then be embedded in blog posts for wider redistribution.

skitch-iphoto

Potluck, on the other hand, is more of a chat board with friends but with the goal of letting you discover trending topics among your connections and discuss those.

skitch-iphoto

Josh Miller, Branch's co-founder broke the news in a Facebook status update, indicating that while both services would continue to exist, he and his team would focus on building a separate product from New York.

This move is the first known by Facebook where it will actually build a new offer from outside its Menlo Park, CA, headquarters. Facebook's emphasis on information and conversation quality is also a sign for advertisers to expect better value from its news feed.

Just like Silicon Valley is famous for its tech startups, New York has always had the reputation for hosting everything media/publishing and advertising (“Madison avenue”). This double acquisition may signal a shift back to the East Coast on the part of serious Silicon Valley news outlets willing to go back to the “basics,” in New York City.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Liva Judic

Liva Judic joined Search Engine Watch and ClickZ in May 2010 as a news blogger. She has lived and worked across the globe in Madagascar, Switzerland, London, NYC, Asia and is now based in between New York and Berlin.

Her background is in government relations and financial media where she started out as a journalist at Bloomberg and became senior editor at AFX news (now part of ThomsonReuters). Prior to forming her own consultancy Judic was head of international PR for a head of state.

Judic focuses on facilitating brand and marketing transitioning for European startups moving to the US. She has been named one of the Top 50 Industry Influencers of 2014 by AGBeat 

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Internet Marketing Campaign Manager
      Internet Marketing Campaign Manager (Straight North, LLC) - Fort MillWe are looking for a talented Internet Marketing Campaign Manager to join the...
    • Online Marketing Coordinator
      Online Marketing Coordinator (NewMarket Health) - BaltimoreWant to learn marketing from the best minds in the business? NewMarket Health, a subsidiary...
    • Call Center Manager
      Call Center Manager (Common Sense Publishing) - Delray BeachWanted: Dynamic Call Center Manager with a Proven Track Record of Improving Response...