Facebook Acquires Mobile Data Optimization Startup Onavo
Mobile data optimization start-up Onavo has been snapped up by Facebook in a deal that stands to boost the social media giant's Internet.org initiative and gives the company its first office in Israel.
Mon, October 14, 2013
Techworld — Mobile data optimization start-up Onavo has been snapped up by Facebook in a deal that stands to boost the social media giant's Internet.org initiative and gives the company its first office in Israel.
The three-year-old start-up, which aims to help people save money on data through its mobile apps, announced the deal in a blog post yesterday. Onavo claims that its services can help people to get more from their mobile data deals by providing them with useful insights on their data usage.
Facebook's Internet.org initiative is aiming to bring the benefits of the internet to the estimated five billion people who remain offline today. The initiative is focused on lowering the cost of data so it could be argued that the acquisition of Onavo, which aims to help people manage their data usage, is a natural one.
Onavo said: "Today, we're eager to take the next step and make an even bigger impact by supporting Facebook's mission to connect the world.
"We're excited to join their team, and hope to play a critical role in reaching one of Internet.org's most significant goals - using data more efficiently, so that more people around the world can connect and share."
Onavo claims that its apps are already used by "millions of people" across the world and expects usage to increase following the acquisition.
The Palo Alto-based company said in the blog post that it will continue to operate as a standalone brand once the deal has been completed.
Under the deal, Onavo's Tel Aviv office will become Facebook's first office in Israel.
The financial details of the acquisition have not been revealed, but Israeli news site Calcalist estimates it within a bracket of $150 million (APS94 million) -$200 million (APS125 million).
A Facebook spokesperson said: "We expect Onavo's data compression technology to play a central role in our mission to connect more people to the internet, and their analytic tools will help us provide better, more efficient mobile products."