Facebook Buys ‘Branch’ for $15 Million to become ‘Conversations’ Team
Jan 14, 2014 09:49 AM EST
Facebook has acquired "Branch" for $15 million to enhance its conversational features.
In a Facebook post, Branch chief executive Josh Miller confirmed the report. He also added that along with eight of his company's team members in New York will work as a new team for Facebook called "Conversations."
Branch is a service that hosts great conversations which allows different types of individuals to talk to each other. It has raised about $2 million from its investors including Lerer Ventures, SV Angel, Twitter founders Evan Williams and Biz Stone, Betaworks' John Borthwick, and the American music producer Jason Goldman.
Because of its investors, Branch was able to launched Potluck, a Tinder-meets-Circa news app, for iPhone. The app serves up midget news clips that users can discuss with their friends.
Additionally, the service was able to launch its titular Web-based link-sharing service that is created to move conversations about news into a new and more contextual space, other than e-mail or Facebook.
With the acquisition, Miller aims to "build Branch at Facebook scale."
He stated in his post, "Although the products we build will be reminiscent of Branch and Potluck, those services will live on outside of Facebook."
However, he also raised doubts of carrying on with the business because it is no secret that most products getting acquired eventually end up stumbling and closing.
In an ending note, he thanked everyone who has been a part of the startup.
"In the meantime, a huge "thank you" to our investors. Especially, Jason Goldman, Evan Williams, Biz Stone, Ryan Freitas, John Borthwick, and Jonah Peretti, who all spent an extraordinary amount of time with us.
"Most importantly though, a big congrats to my eight teammates who have worked tirelessly, often behind the scenes."