The acquisition blitz by Facebook isn’t done yet. After opening the checkbook in the first quarter for WhatsApp and Oculus, the company dialed back the sticker shock. Facebook’s latest purchase is the fitness tracker app, Moves. Terms of the deal haven’t been disclosed, but it won’t have the ‘what in the world’ price attached to it.
The app they acquired already has a substantial user base, and works on iOS and Android devices. It uses a smartphone’s accelerometer to determine if the you are walking, running or kicking it on the couch. Kidding on the couch part, the app tracks additional physical activities.
Facebook is continuing its trend of letting its acquisitions work as standalone entities. The company released a statement confirming the move. “The Moves app will continue to run as a separate, stand-alone application,” Facebook said. “We’re looking forward to the app continuing to gain momentum.” Several of the app’s employees will make the move to Facebook HQ.
The purchase was revealed in Facebook’s earnings call yesterday. A serious beat there, with a sizable increase in monthly active users. They seem to have topped out in the United States, but growth across the world continues at a blistering pace. They are going to need those drones asap to connect the rural areas of the world.
This move by Facebook is just its latest in creating an ecosystem of apps. They have photos covered with Instagram, texting with WhatsApp and its own chat service, fitness with Moves and eventually virtual reality with Oculus. A benefit to the fitness app is that it constantly acquires data from the user without direct engagement.
One question that remains, is how to monetize the fitness trackers? Other apps have offered guided fitness courses, while others charge. The data that Facebook gets from Moves could be offered up to advertisers. If they want extreme targeting, fitness companies could drill down to the type of activity a potential lead engages in.