Facebook acquires Chai Labs for $11m

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IN yet another small acquisition, social networking giant Facebook has bought Chai Labs, AllThingsDigital reported overnight, citing several sources.
AllThingsDigital could not confirm the exact price for the purchase of the content-focused start-up, but it is likely to be around $US10 million ($11.19 million) and more focused on acquiring talent.
The Mountain View, California-based Chai Labs, which was founded by former Google AdSense executive Gokul Rajaram, raised $US1.1 million in funding last year, according to a regulatory filing, and $US1.3 million before that.
Chai Labs advisors include prominent Silicon Valley players, such as Marc Andreessen, Reid Hoffman and Joe Kraus, who appear to be angel investors.
On its website, Chai Labs says that the company is able to "bring a unique blend of skills and perspectives which help us reinvent the way content is created, stored, and delivered, to drive user and revenue growth for our customers."

The ability to help publishers create, store and deliver content is something that makes sense for Facebook, given the powerful social networking site has been trying to work with media companies rather than compete with them.
Facebook declined to comment and Chai Labs has not responded to an email query.
Last week, Advertising Age reported that Facebook is set to hit $US1.285 billion in global advertising sales in 2010, citing analysis done by eMarketer.
The company was most recently valued at $US23 billion.


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