When the app first started in 2012, Pheed users were primarily teenagers who were already involved in Facebook and or Twitter.
According to The Huffington Post’s Craig Kanalley in 2013, “All indications point to teenagers as fueling Pheed’s growth.” Read More
Eighteen months after the launch, it was announced that Mobli, an Instagram competitor, acquired Pheed for $40 million. (The Pheed co-founder and his partners only invested $3.7 million initially.) Now, in 2016, the target audience has evolved into young people (as opposed to just teens), involved in other forms of social media, (including Facebook, Twitter, Snapchat, and Instagram) who have an interest in expressing themselves through art. (whether its photography, fashion, or music)
This video gives you a brief on the popular Snapchat, Pheed, Tumblr, and Vine.
Mobli was smart. According to Ilya Pozin at Forbes, “Mobli isn’t looking to simply gain Pheed’s 5 million users. Mobli wanted the live broadcast, pay-per-view service.” This “pay-per-view” is a feature that allows users to charge followers a set price of their choosing (usually around $10-$15) to view the user’s live broadcast. Typically, celebrities use this option to earn money for charities. (anything from two NBA stars rap-battling to artists recording music live) Mobli knew what they were doing with their acquisition. They saw the gem that was Pheed and jumped on it.
WHAT DOES THIS MEAN FOR PHEED? Pheed now has the advantage of being in the hands of a multi-million dollar company. Mobli has the resources to take Pheed to the next level. This could mean more technological advanced features for young users! My prediction: 4-dimensional posts.
Acquisitions are MONEY MAKERS. The most successful companies BUY OTHER COMPANIES. Whether it is to buy out the competition or to add to their own business, acquisitions can be very rewarding. One of the biggest examples is when Google bought Youtube back in late 2006. Google’s CEO Eric Schmidt closed the all-stock deal for $1.65 billion. And again in 2005 when Google acquired Android for $50 million. Purchases like these underline the whole “big fish eat little fish” idea, making it difficult (to say the least) for small businesses to stay afloat without either selling out or losing to their competition.