Social Media News: Facebook Acquires Onavo – A Mobile Data Saving Service

Facebook recently announced its latest deal to acquire the mobile data saving service company Onavo. This is part of a wider project by Facebook aimed at connecting the world through greater internet access. Onavo is an Israeli based start-up that makes data-compression software to help minimize data usage on smartphones, and despite its acquisition by Facebook it will still remain a “standalone brand”.

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Onavo’s mobile app works to cut people’s mobile phone costs by making their use of data more efficient. It claims that it can expand your data plan by up to five times, helping to save money that was being spent on running over data plans or costly data roaming charges. According to Onavo’s blog, the creators of the company began their startup “with the goal of helping today’s technology consumers and companies work more efficiently in a mobile world”. The company’s co-founders are Guy Rosen (CEO) and Roi Tiger (CTO), and they have announced in their blog post that they are now becoming part of “Facebook’s mission to connect the world”, and give greater internet access to those who are less fortunate and do not already have the ability to get online.

The Onavo analytic tools will also help Facebook to provide better, more efficient mobile products, as part of their existing services includes Onavo Insights – the first mobile market intelligence service based on real engagement data.

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The three year old start up will remain based in its Tel Aviv Office, giving Facebook a new office in Israel. This is not Facebook’s first acquisition of an Israeli based company, as in March 2011 they bought the feature phone interface developer Snaptu for $70 million and in June 2012 they acquired the facial recognition specialist Face.com for $50-60 million. However, with these companies the employees were transferred to Facebook’s own offices in California. This acquisition on the other hand will be the first office that Facebook has in Israel. There are reports of the Onavo deal going for somewhere between $100 million and $200 million – a greater value than the previous Israeli acquisitions went for.

Mark Zuckerberg, Facebook’s CEO, has been looking at several technology companies to acquire in order to help him in a project aimed at making Internet access affordable to all, this is just one step in this process aiming to provide better and more efficient mobile products. This seems to be paving the way for Facebook’s introduction of video ads to the site, as the acquisition of Onavo will help to give Facebook apps a speed boost and lower the cost of web access, meaning that video adverts on mobile devices will be less costly.

What do you think?

What do you think the acquisition of Onavo means for Facebook?

Rowena Cormack

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