Facebook Inc. has recently celebrated ten years of existence and rumor has it that the company is looking forward to expanding its horizons and to make some acquisition in the United Kingdom. It is known that Facebook has a very solid presence both in the online market and in the mobile market but apparently the company wants to take its mobile expertise a step further and improve its services in this field. It is known that Facebook managed to dramatically increase both its sales and its revenues by relying heavily on the mobile industry, this is precisely why a UK acquisition would not take anybody by surprise.
It is said that the social media giant plans to expand its business horizons by purchasing start-up businesses in the capital of the country, London. This is not the first time Facebook is trying to conquer the mobile market and to be one step ahead of its competitors, as the social media platform is committed to staying on top. It is said that Google Inc. has entered the “mobile race” as well and that it even managed to buy one start-up intelligence company ahead of Facebook last month. These companies are sold for hundreds of millions of pounds and the competition is harsh, and given the fact that the overall revenue of Facebook is estimated at over $10 billion, the company is interested in making profitable venture investments in the United Kingdom and perhaps in other European countries as well.
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Why The United Kingdom?
The reason why Facebook is said to have focused on the British start-ups is because these businesses have sky-rocketed over the past several years – not only are they very profitable (thus being yet another income opportunity for the social media giant) but they also have encouraging levels of growth and prospects as well, especially in the mobile application development industry. If Mark Zuckerberg decides to start acquiring mobile start-ups in the UK, then Facebook would certainly thrive given the fact that the e-commerce and the gaming industry have been blossoming lately.
However, if Facebook decides to broaden its area of expertise and to start investing in mobile application development, this will happen not only for revenue-related reasons but also because the giant wants to secure its position as a leader in its niche. It is said that Facebook initially planned to purchase DeepMind, an artificial intelligence company based in the UK but Google was faster and offered the owners almost half a billion dollars for it. When the social media platform failed in acquiring this start-up, it then focused on yet another company called NaturalMotion which again, was purchased faster by Zynga for more than $500 million. By the looks of it, this is a tech-battle where some of the world’s major companies are fighting for the supremacy in the online environment.
As the top executives from Facebook seem to think, London represents one of the most notable mobile development hotspots in the world and this is precisely what caught the attention of the company. Based on financial statistics that have been recently released, more than half of the revenue Facebook managed to make last year was based only on mobile ads, therefore it is perfectly understandable why the company wants to invest in the mobile application development industry.