Facebook Reorg May Pave The Way For More Acquisitions

Mike Brown

Photo: Mike Brown, Twitter profile

Mike Brown, director of corporate development at Twitter, thinks that Facebook’s recent reorganization was done to make acquisitions easier.Brown was Facebook’s corporate development manager in charge of talent acquisition for two years.

Back in December, after Brown left, Facebook announced its reorganization to focus on key products with integrated teams in these areas: profile, mobile, ads, product, and engineering. 

Last night on a panel at startup competition Vator Splash in San Francisco, Brown put forth his theory.

Twitter and other startups typically have separate design, product, and engineering teams. That makes it more difficult to add in a separate business after a startup is acquired.

If you look at big companies that do a lot of acquisitions, like Cisco, they’re all organised around business units. Google also recently reorganized its teams into core product areas, and it’s one of the biggest buyers in tech, with more than 70 acquisitions in 2011 alone.

That makes it easier to slip newly acquired companies into a product spot.

Facebook hinted in its recent IPO filing that big acquisitions are a possibility: “As part of our business strategy, we have made and intend to make acquisitions to add specialised employees, complementary companies, products, or technologies. However, we have not made any large acquisitions to date, and, as a result, our ability to acquire and integrate larger or more significant companies, products, or technologies in a successful manner is unproven.”

In fact, the company spent $6.3 million buying a small (undisclosed) company on the very day it filed.

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