Facebook, founded in 2004, has grown from a college social network into one of the world’s largest technology and social media companies. Facebook’s core Facebook app has over 2.9 billion monthly active users as of 2021, but the company also owns several other major apps and services.
Facebook’s Major App Acquisitions
Over the years, Facebook has acquired dozens of companies and apps. Some of their biggest and most well-known app acquisitions include:
- Instagram (acquired in 2012 for $1 billion)
- WhatsApp (acquired in 2014 for $19 billion)
- Oculus VR (acquired in 2014 for $2 billion)
- Masquerade (MSQRD app, acquired in 2016)
- tbh anonymous social media app (acquired in 2017)
- Onavo mobile web analytics (acquired in 2013)
- Beluga group messaging app (acquired in 2011)
- Giphy GIF search engine (acquired in 2020 for $400 million)
Instagram and WhatsApp in particular have grown tremendously under Facebook’s ownership. Instagram now has over 1 billion monthly active users, while WhatsApp has over 2 billion monthly active users.
Full List of Apps Owned by Facebook
Here is a more comprehensive list of apps and services currently owned by Facebook:
| App Name | Category | Users |
|---|---|---|
| Social media | 2.9 billion MAU | |
| Messenger | Messaging | 1.3 billion MAU |
| Social media | 1 billion MAU | |
| Messaging | 2 billion MAU | |
| Oculus | Virtual reality | N/A |
| Workplace | Social network for work | 7 million paid |
| Portal | Video calling devices | N/A |
| Giphy | GIF database | 700 million MAU |
| Onavo | Web analytics | N/A |
| CrowdTangle | Social media analytics | N/A |
| tbh | Anonymous social media | 5 million downloads |
| Moves | Fitness tracker | 1 million downloads |
| Masquerade (MSQRD) | Face filters | N/A |
As you can see, Facebook owns apps and services across social media, messaging, analytics, virtual reality, augmented reality, and more. Their largest properties besides the core Facebook app are Instagram, Messenger, WhatsApp, and Oculus in terms of users and popularity.
History of Facebook’s Major Acquisitions
Here’s a brief history of when Facebook acquired some of its most important current apps and services:
- Instagram – Acquired in April 2012 for $1 billion. Instagram had around 30 million users at the time.
- WhatsApp – Acquired in February 2014 for $19 billion. WhatsApp had around 450 million users at the time.
- Oculus VR – Acquired in March 2014 for $2 billion. Oculus was a startup pioneering virtual reality headsets.
- Onavo – Acquired October 2013. Onavo provided mobile web analytics and allowed Facebook to monitor app usage and trends.
- Giphy – Acquired May 2020 for $400 million. Giphy is a large GIF database and search engine with over 700 million monthly active users.
These major acquisitions allowed Facebook to expand beyond just their core Facebook app into other areas like messaging, mobile analytics, virtual reality, and visual communication. They likely acquired these companies both for their technology and to neutralize potential competitors.
Messaging Apps
Messaging apps are a major part of Facebook’s acquisition strategy. In addition to owning the hugely popular WhatsApp messaging platform, they have acquired multiple other messaging apps over the years.
Here are some of the messaging apps owned by Facebook:
- WhatsApp – The largest messaging app in the world with over 2 billion monthly active users as of 2020.
- Messenger – Native messaging app companion to Facebook’s main app with over 1.3 billion MAU.
- Beluga – Group messaging app acquired in 2011. Merged into Facebook Messenger.
- tbh – Anonymous social media app with polling and messaging. Acquired in 2017.
Facebook saw early on the rapidly growing popularity of messaging apps, especially among younger demographics. Acquiring apps like WhatsApp and Beluga allowed them to boost Messenger’s capabilities and lock users within their broader ecosystem.
Virtual Reality and Augmented Reality
Facebook has been an early investor in virtual reality and augmented reality technology, acquiring Oculus VR in 2014 and releasing a series of popular Oculus virtual reality headsets in recent years. Other AR/VR acquisitions by Facebook include:
- Oculus VR – Pioneer of affordable virtual reality headsets, acquired for $2 billion in 2014.
- Surreal Vision – Computer vision and augmented reality startup, acquired in 2015.
- TheEye Tribe – AR eye-tracking software, acquired in 2016.
- FameBit – Influencer marketing platform for branded VR/AR content, acquired in 2016.
- Masquerade (MSQRD) – Face filters and masking effects app, acquired in 2016.
Facebook sees long-term potential in augmented reality smart glasses and virtual reality for gaming, communication, and social media. Their early investments in Oculus, Surreal Vision, and other AR/VR companies give them a head start in developing this technology.
Other Categories
In addition to messaging and AR/VR, Facebook has acquired companies in a diverse range of other categories:
- Social media: Instagram, tbh
- Analytics: Onavo, CrowdTangle
- Facial recognition: Faciometrics
- eCommerce: TheFind
- Search: Jibbigo, Wit.ai
- Video: Vidpresso, LiveRail
- Drones: Ascenta
- AI: Ozlo
- Hardware: Redkix
Facebook picks up companies in strategic areas that either supplement their existing products (like analytics and video), provide technology they can incorporate (facial recognition, AI), or eliminate nascent competitive threats (alternate social networks).
Advantages of Acquisitions
Why has Facebook invested so heavily in app acquisitions over the years? Some key advantages include:
- Growing user base – Inherit millions of users from established apps like Instagram and WhatsApp.
- Technology – Gain proprietary technology developed by innovative startups.
- Talent – Acquire promising teams of entrepreneurs and engineers.
- Remove competition – Neutralize emerging rivals before they can gain traction.
- Monetization – Increase opportunities for advertising and paid services.
Acquiring fast-growing apps like Instagram accelerated Facebook’s user growth without having to build a similar app from scratch. And purchasing innovative startups allowed Facebook rapid access to new technologies.
Criticisms and Controversies
However, Facebook’s acquisition strategy has not been without controversies. They have received criticism for:
- Buying competitors to concentrate market power.
- Concerns over data privacy and linking user data across services.
- Not living up to promises to keep acquired apps independent.
- Cherry-picking the best small startups, stifling innovation.
- Copycatting features from apps they acquire.
For example, after saying WhatsApp would remain independent, Facebook has recently moved to link WhatsApp user data with Facebook accounts. And competitors have argued Facebook can squash rivals by acquiring them before they have a chance to fully establish themselves.
Facebook counters that its acquisitions provide resources for apps to grow and innovate in ways they otherwise may not have been able to do. But regulators have increasingly been scrutinizing Facebook’s acquisitions and anti-competitive practices.
Recent Acquisition Trends
Facebook has shifted acquisition strategies in recent years:
- Fewer big, established apps – After major purchases like Instagram and WhatsApp, Facebook seems less interested now in buying other major platforms.
- Smaller, strategic startups – More acquisitions like Redkix for hardware expertise, or Ozlo for AI, to support internal projects.
- Talent acquisitions – Acquiring promising startups mainly for their engineering teams rather than products.
With antitrust regulators starting to push back, Facebook is less likely now to try to acquire other huge social media platforms. Instead, they focus on smaller strategic acquisitions to gain technology and talent.
Future Outlook
Looking forward, Facebook is likely to continue acquiring promising startups to augment their hardware efforts and next-generation technology research, especially around AR/VR. Some potential areas of interest:
- Virtual and Augmented Reality – VR for gaming/video and AR for smart glasses remain high priorities.
- Artificial Intelligence – AI research for areas like language processing and content recommendation.
- Hardware and Devices – Components and expertise to aid development of proprietary devices.
- Cryptocurrency – Technology to support Facebook’s Libra cryptocurrency project.
- Enterprise Services – Tools to expand Facebook’s business/enterprise offerings.
However, Facebook will likely tread carefully to avoid more anti-monopoly lawsuits. Big purchases may be off the table, but expect Facebook to continue scooping up smaller startups that can provide key technologies and talent.
Conclusion
Facebook has grown from a simple social network into a tech giant partly through major strategic acquisitions. Key purchases like Instagram, WhatsApp, and Oculus VR provided users, tech talent, and strategic advantages. Recently, smaller purchases have been aimed at gathering AI expertise and hardware engineering capabilities.
However, Facebook’s acquisition strategy has also generated many criticisms and anti-trust concerns. As regulatory scrutiny increases, Facebook seems to be relying less on huge buys like WhatsApp. But targeted smaller acquisitions of startups will likely continue as Facebook seeks new technologies and talent to power its next generation of initiatives around hardware, VR/AR, AI, and more.