MENLO PARK, CA - APRIL 04: Facebook CEO Mark Zuckerberg speaks during an event at Facebook headquarters on April 4, 2013 in Menlo Park, California. Zuckerberg announced a new product for Android called Facebook Home. (Photo by Justin Sullivan/Getty Images)
Facebook will buy startup Parse for $85 million, according to a report.
Parse, which was founded in 2011 and helps companies build mobile applications across different platforms, had already raised $7 million and was going through its second round of funding when Facebook stepped in, according to the Wall Street Journal which used unnamed sources.
The startup was on the way to raising $50 million when Facebook offered $85 million in cash and stock. Apparently startup Dropbox made an offer but was outbid by the social network.
From the WSJ story:
Douglas Purdy, Facebook's head of platform, said in a blog post that the social network acquired Parse to "enable developers to rapidly build apps that span mobile platforms and devices." Facebook declined comment beyond the blog post.
Facebook's purchase of Parse is likely part of its campaign to boost
its mobile visibility and share price. In the past, Last September, Facebook faced questions about how it plans to address the rapid shift from desktop computers to mobile devices and turn a profit. Already the social network has created more user-friendly Facebook mobile apps, including the introduction of Facebook Home, a new skin for Android phones.
it's unclear if Parse was bought as an "acqui-hire" or for its intellectual property, but Parse's universal ability to create apps on any platform makes it seem more valuable than just workers.