However, the acquisition isn’t directly from Face.com. Yandex, a Moscow-based search engine, is selling its stake in the Face.com to Facebook. Yandex, together with Israeli investment fund, Rhodium put $4.3 million into Face.com in return for 18.4 percent of the company.
Face.com, an Israeli startup, is a face recognition platform. The app is already integrated with Facebook and allows users to auto-tag friends in photos one at a time or in the entire album. It can also guess a user’s age, gender and mood. Face.com has a mobile API and an app called KLIK that uses a camera to auto tag Facebook photos. It can easily be implemented on top of Facebook’s new camera app and provide seamless photo tagging.
Face.com has, so far, raised only $5.3 million from Yandex and Rhodium. It’s being reported that Yandex wants cash and stock in Facebook in return for the deal. Which means that Yandex expects Facebook stock to hold strong unlike what the market thinks.