Facebook Inc. (
has acquired Storylane, a social networking startup for an
undisclosed amount. According to The Wall Street Journal and
AllThings D, Facebook has acquired Storylane's team of five
members and will not acquire any user data from the startup.
Launched in Oct 2012, Storylane is a blogging platform that
encouraged users to share more personal details. Users were
generally asked about their childhood, religion and other
details, the answers of which ultimately took the form of
stories. Storylane allowed users to not only follow their friends
but also strangers, which significantly expanded its customer
base within a very short span of time.
Although Facebook stated that it will close down the service,
it did not specify any time span. Storylane said that it is
building tools that will help users to migrate their content to
other services as per their desire. However, the popularity of
the platform and the fact that Facebook does not have a blogging
service may prompt the company to continue the application, in
Facebook will add Storylane to its long list of talent
acquisitions that includes the likes of Glancee (May 2012) and
Threadsy (Aug 2012). Although these acquisitions were intended to
expand Facebook's reach in mobile and social marketing, the
Storylane acquisition is intended to improve content.
Redesigned News Feed
Facebook recently announced that it has redesigned its news
feed, which now focuses more on photographs and visual stories.
The new design will give more space to photos, article shares and
check-ins. The redesigned news feed will place photos at the
front and center, which will improve visualization.
With the enhanced news feed, users do not need to dig deeper
in order to find out what's happening in their social circle.
Facebook also enabled its users to switch between multiple feeds
and customize new ones by tweaking their preferences.
This aims at removing the complexity of Facebook's interface.
As the platform currently delivers everything from the web into a
single news feed, the complex interface makes it difficult for
users to access relevant content. Now, users will be able to
access Facebook like a newspaper, with the option to choose all
posts, most recent posts, or those dedicated to specific
categories like music.
Facebook also announced that it is focusing on improving
consistency between devices such as personal computers and mobile
devices from the likes of
Facebook continues to face significant near-term headwinds. In
addition to "Facebook fatigue" and a complex interface, the
company continues to face significant competition from newer
social sites such as Google+ from
, Pinterest andTumblr.
In this regard, we believe that the redesigned news feed will
boost customer engagement in the near term. Investors would also
like to see the effect of the new updates on advertisers as they
contributed approximately 84% of Facebook's fourth quarter 2012
Currently, Facebook has a Zacks Rank #3 (Hold).
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