Facebook Acquires Mobile App Development Company Parse

Posted Apr 26, 2013

Facebook has acquired Parse, a mobile backend-as-a-service startup.  Parse is a company that sells tools and services that helps build mobile apps.  The deal was worth around $85 million and includes retention, according to TechCrunch. Facebook had to outbid multiple Silicon Valley companies for the deal.

Parse started two years ago and grew at a rapid pace.  They signed up customers like Cisco, Cadillac, Linden Lab, IDEO, Food Network, and the Green Bay Packers.  The company made it possible to help mobile developers store data in the cloud and managing identity logins.  The company also handled push notifications and can run custom code in the cloud.

How will Facebook integrate Parse into their company?  It is likely that Facebook will offer a service that makes it easier to integrate their social network into all kinds of apps.  Facebook will also be able to offer back-end services for data storage, user management, and notifications.

Parse is going to keep their “freemium” revenue model so Facebook will generate a new revenue stream from the service.  Parse currently has over 60,000 apps that they are working with.  Parse’s users are not going to be affected as a result of the acquisition.

?In order to provide the best experience possible, developers also need to build a whole host of infrastructure. Parse is a natural fit. They?ve really just abstracted away a lot of the work necessary to get an app up and running,” stated Facebook?s Director of Product Management Doug Purdy.

Parse raised around $7 million in funding from Ignition Partners, Start Fund, Google Ventures, Menlo Ventures, SV Angel, and several other angel investors.