The Facebook FriendFeed Fail

Remember back in August when Facebook bought FriendFeed for approximately $50 million to go to war with Twitter? The terms of the deal were actually $15 million in cash and the other $32.5 million is in stock (based on a Facebook valuation of $6.5 billion at the time). With Facebook’s IPO coming closer, it’s likely the stock position of the FriendFeed founders will be worth more than $35 million.

Traffic has plummeted on on FriendFeed since the acqusition. Over the past month there have been several days with less than 5,000 US visits. (shown here on quantcast,click on day).

With 12 employees at Friendfeed, this amounts to around 400-500 unique US visits per employee per day. As any blogger knows if you post 5 posts per day on relevant or trending topics you will exceed this number easily.

Now, just picture that $50 million dollars. Ouch!

Related posts:

1. Facebook Buys FriendFeed
2. Facebook Going Public, IPO Coming Soon
3. Facebook Click Prices Take NYE Rest
4. Facebook and Mafia Wars Face Lawsuit
5. Twitter Traffic Plunges

2 Responses to “The Facebook FriendFeed Fail”

1. Kevin says:

   December 24, 2009 at 5:32 am

   these guys just got owned
2. Chad says:

   January 8, 2010 at 4:47 pm

   I can’t believe traffic dropped so much on FriendFeed. But then again, I haven’t been there in a couple months. So I guess it’s not that surprising. Fail.