Thursday, June 21, 2012

Facebook to buy Israeli startup Face.com for an estimated $100 million




In latest in string of acquisitions, the social media giant will acquire the 11-person facial-recognition company in the coming weeks for between $80-100 million. 


Facebook Inc. said Monday it was buying Face.com, the Israeli company that now provides facial-recognition technology used by the world's largest social network to help users identify and tag photos.


The deal bolsters one of Facebook's most popular features -- the sharing and handling of photos -- but the use of the startup's technology has spurred concerns about user privacy.


Responding to inquiries from U.S. and European privacy advocates, Facebook last year made it easier for users to opt out of its controversial facial-recognition technology for photographs posted on the website, an effort to address concerns that it had violated consumers' privacy.


Neither Facebook nor Face.com disclosed terms of the deal, which is expected to close in coming weeks. Media reports in past weeks have pegged the size of the transaction at between $80 million to $100 million.


Facebook will acquire the technology and the employees of the 11-person Israeli company.

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