Earlier this morning, news broke that Facebook had officially acquired an app by the name of tbh. For the majority of us not still in high school, we found ourselves defaulting to Google searches and Techcrunch articles to find out what exactly tbh is and why Facebook would spend millions acquiring it right now.
After spending the better half of the morning doing our research, we broke down the 5 things to know about Facebook's acquisition of tbh:
1. tbh is a superlative social app that is incredibly popular with the youth.
In other words, tbh allows its users—the majority of whom are below the age of 16—to answer positive multiple choice questions about their friends. The polling process can be likened to voting on your classmates' superlatives to be featured in the yearbook.
2. tbh garnered 5M downloads and 2.5M daily active users in just nine weeks.
In just nine weeks on the App Store, tbh was able to attract 5 million downloads and 2.5 million daily active numbers. On top of that, they've already collected over 1 billion in polling results. That's a lot of valuable information on the new generation, something Facebook factored into their acquisition offer.
3. Facebook acquired tbh to remain relevant amongst the next generation (in the face of Snapchat).
With the help of those 5M downloads and 2.5M daily active users, tbh caught a lot of attention from the larger social media platforms. Facebook was the first to move with an impressionable offer, in a likely attempt to avoid losing the app to Snapchat. Much like, they did with Instagram Stories, Facebook could've attempted to clone tbh but likely decided to not join the race and instead make their offer due to how fast tbh was able to grow in a short amount of time.
4. Facebook paid less than $100M to acquire tbh.
While the financial terms have not been formally disclosed or published, TechCrunch is reporting that acquisition saw Facebook shelling out less than $100M. The deal also will not require any type of regulatory approval, which will allow tbh to get going with Facebook's resources relatively quickly.
5. tbh will be using Facebook's resources to scale.
As part of the acquisition, the co-creators of tbh—Nikita Bier, Erik Hazzard, Kyle Zaragoza and Nicolas Ducdodon—will be moving their shop to Facebook’s Menlo Park HQ. There, they'll look to use Facebook’s rescoures—not limited to cash, engineering, anti-spam, moderation, and localization—to scale their app into hundreds of millions of users.