Social media giant Facebook bought a Palo Alto-based startup Onavo, which makes data-compression software, to help minimise data usage on smartphones. The terms of the deal were not disclosed.
As per some reports, the deal was struck for about $200 million.
According to the Onavo blog post:
We’re excited to join their team, and hope to play a critical role in reaching one of Internet.org’s most significant goals – using data more efficiently, so that more people around the world can connect and share. When the transaction closes, we plan to continue running the Onavo mobile utility apps as a standalone brand. As always, we remain committed to the privacy of people who use our application and that commitment will not change.
We are incredibly proud of the talented team we have assembled, and, recognising this, Onavo’s Tel-Aviv office will remain open for business and will become Facebook’s new Israeli office.
We’ll continue to advance the work we are doing in collaboration with Facebook’s great team. Thank you to everyone who has joined us on this journey. We’d like to extend a special thanks to our investors, who believed in us and in our vision from the early days. We’re excited for what’s next.
Guy Rosen, Co-Founder & CEO
Roi Tiger, Co-Founder & CTO
We are joining the Facebook team http://t.co/wEMokuq2DC— Onavo (@onavo) October 14, 2013