ACQUIRE - Facebook Acquires TBH Application

According to industry sources, Facebook paid just under US$100 million for the 'tbh' app but they have not released the details. 

Several weeks ago Facebook acquired social media application 'tbh'. The months old application has already attracted 5 million users (downloads) who have sent more than a billion messages. The application reportedly has 2.5 million active daily users.

The application allows users to anonymously answer questions about their friends, fellow employees and other parties in their network. The 'tbh' application works by giving users a description, such as "always the best dressed," then allowing them to anonymously choose which person meets that description from a small set of names in their network. By keeping the activity structured, 'tbh' expects to maintain positive conversations, instead of regressing into bullying as other anonymous apps have done.

It is unusual for Facebook to acquire an application that is focused on anonymous activity. However, the social media giant is seeking new ways to reach young users who are fickle but savvy and often responsible. While this cohort may not be as loyal as others they can be engaged to communicate in different ways that attract their interest. 

In her statement Vanessa Chan, a Facebook spokesperson, said, “TBH and Facebook share a common goal -- of building community and enabling people to share in ways that bring us closer together. We’re impressed by the way TBH is doing this by using polling and messaging, and with Facebook’s resources TBH can continue to expand and build positive experiences.”

The staff of 'tbh' will move into Facebook infrastructure and use FB resources but maintain their autonomy from other FB activities. 

WHAT YOU NEED TO KNOW:  Facebook’s advertising business model requires people to use their real identities, make clear what they like or don’t like and have their social behaviours attached to their identity. This acquisition seems to show the rising value of acquiring an ecosystem with lots of activity and widespread appeal even if it doesn't fit the old paradigm. Perhaps a new recipe is required to grow a giant but mature social media play.