Facebook Acquires Threadsy; Looking to Bolster Social Ad Offering

Today has been a relatively slow news day, except for the Apple vs Samsung jury verdict, which is being lapped up by news outlets across the web.

There was one more interesting, though mostly neglected, development in the tech space. Facebook, which continues to acq-hire startups left, right and center, has acquired Threadsy, the company behind a social analytics tool called Swaylo.

Here’s the official statement by Threadsy’s CEO:

“Swaylo offers you the opportunity to see what kind and how much attention you’re getting for the things you post, share, and like on social media networks. Through an analysis of your social graph, Swaylo reflects your Sway – the impact your online activities have in your social circle and across the social graph.

Today we’re announcing that Threadsy will be acquired by Facebook. Threadsy is the company that operates Swaylo.com, provides people with their Sway score, and helps businesses, organizations and brands connect with their social influencers.

This is incredibly exciting for us! We built Swaylo because we believe Facebook and other social media services are the digital representation of our lives. There is no better opportunity to take Swaylo’s vision to the next level than at Facebook.”

Swaylo offered a visual interface which enabled customers to measure the impact of their social campaigns on Facebook. The product fits in nicely with Facebook’s advertising offering, and the team may build out Facebook’s analytics and reporting tools, contributing to its primary revenue engine — social ads.

Facebook’s stock is at an all time low right now. If Facebook is able to prove the value of its social advertising offering to advertisers in the next couple of quarters, it could easily be worth the $100 billion it was supposed to be worth just a few months ago. This seems to be a step in the right direction.

via TNW

Facebook Stock At Nearly Half of IPO Price

Facebook’s stock has been completely hammered in the last week, after it reported its earnings for Q2 2012. While Facebook’s stock dropped nearly 20% following the earnings of Zynga and itself, the carnage is far from over.

Its stock is currently trading just above $20, which implies a valuation of just around $45 billion, which is much lower than the much touted $100 billion valuation it was supposed to be worth.

Its stock price is now just slightly more than half its IPO price, which means that nearly all investors are in the red. After showing explosive revenue growth in the last couple of years, its numbers in the last two quarters have failed to impress. Its ad offerings have failed to generate any significant revenue so far, and the most recent dip in its share price was triggered by allegations by an advertiser that 80% of all clicks on Facebook ads came from bots. To add to that, came the revelation that around 8% to 9% of Facebook’s users are fake users (duplicate users, misclassified accounts and “undesirable” accounts).

Facebook’s problems are many:

1. It still hasn’t been able to find a way to effectively monetize its growing mobile audience.

2. Its growth in the US and Europe has peaked, and there is not much revenue upside potential left through new user growth in those markets.

3. In developing markets like India, where it is expected to grow the most, the average ad revenue generated per user is much lower than in the US, so it wouldn’t impact its revenue growth much.

Given how Google has been making tons of money from search advertising, Facebook could easily be worth much more if it’s able to prove that social advertising is just as, if not more, effective as search advertising.