Facebook buys mobile e-commerce app Karma

The acquisition was announced just after the markets closed on Facebook's inaugural day as a public company

The mobile gift-giving app Karma has announcedit has been acquired by Facebook. The announcement came shortly after the markets closed on Facebook's first day as a publicly traded company.

Karma allows users to buy gifts from its catalogue from their mobile phones. Recipients receive a text message notifying them of the gift and directing them to a website where they can exchange it if they want to and enter their shipping address.

Karma, which launched in 2011, is already integrated with Facebook. Karma draws from Facebook profiles to notify users of friends' birthdays, for example. The app will retain its functions after the acquisition, according to a blog post from Karma's founders.

The move continues Facebook's push to enhance its mobile offerings, where it currently generates less revenue per user than it does on the desktop. The app's commerce features could suggest Facebook plans to expand in that area.

Ray Valdes, an analyst with Gartner, noted that Facebook has "a strong historical pattern" of buying companies to get access to their expertise.

"I would interpret [the move] as acquiring general talent, but also experience in a particular domain, which is in this case, mobile, commerce and social interaction," Valdes said.

Cameron Scott covers search, web services and privacy for The IDG News Service. Follow Cameron on Twitter at CScott_IDG.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Cameron Scott

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?