Facebook Acquires Face Recognition Startup Face.com
Social media giant Facebook started trading its stock on the public market in the middle of May, opening up to an impressive initial price offering of $38.23. Facebook’s stock was one of the most heavily anticipated in recent memory, and most pundits believed that the stock’s price had nowhere to go but up.
However, the company’s stock price has fallen up to 32 percent in its first month of public trading. Facebook has rebounded in recent weeks, but is still down 16 percent from its initial price offering.
Facebook boasts over a billion users and some of the most powerful social media technology on the web, loaded with applications and integrated with smart phones.
But the feeling among regular users and some industry experts is that Facebook’s user base is slowly eroding, using the social media giant less than ever and generally getting bored of the company. In order to boast its stock and raise consumer confidence, Facebook has to roll out some new tricks that will keep users satisfied and updating their Facebook pages.
These new tricks have come mostly in the form of acquisitions. Earlier in the year, Facebook acquiring fast rising photo company Instagram. And just recently, they acquired the facial recognition website, Face.com.
What Face can do for Facebook
Face.com is a facial recognition service that has already built a few applications for Facebook use. These applications allow users to find untagged pictures of themselves amongst their friends’ pages. While Face.com was a more limited service by itself, its acquisition by Facebook will offer improvements in service for both companies.
Face will now have an enormous database of users and photos for its software to interact with, which will only give them more feedback with which to improve their service. Facebook gets a new, fresh application that will most likely quickly be built into their interface. Facebook will probably offer users a chance to search themselves in photos all across their photo database of friends—an upgrade of sorts from the application Face has placed on Facebook right now.
Facebook and its investors certainly hope that this new software can help bring Facebook some new buzz and help increase its price on the stock market. Face gets to expand its software to a much bigger network of users and gets much bigger financial resources on its side. Only time will tell if Facebook’s acquisition of Face was a success, but its initially looking like a good deal for both sides, and something that could get users back to Facebook.