Facebook discloses acqui-hires and patents spending for 1H 2012

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Facebook has been recognised for making startup acquisitions, also known as acqui-hires, but the costs it incurs for every deal is usually kept in the closet.

However, in a quarterly filing with the Securities and Exchange Commission on 1 August, Facebook surprisingly revealed an aggregate price tag for all “non-material” sized deals made in 1H 2012 reaching US$24 million.

“During the six months ended 30 June 2012, we completed business acquisitions for total consideration of US$24 million. These acquisitions were not material to our condensed consolidated financial statements individually or in the aggregate.”

During the period, Facebook made six acquisitions. Two of these were of material size:  Face.com and Instagram. That means Facebook has spent a total of US$24 million in purchasing Glancee, Lightbox, Karma, and Tagtile.

Nonetheless, the US$24 million spent on those deals does not include the salaries, individual stocks, and other bonuses that are given to employees.

Moreover, Facebook issued its new shares of stock with 40,000 shares of Class A stock on the purchase date of Tagtile, 36,828 Class A shares to coincide with the Glancee purchase, and 1,099,986 shares on the day of the purchase of Karma.

Facebook also disclosed its spending on patent and IP acquisitions amounting to US$633 million. The company spent US$550 million on the purchase of numerous AOL patents from Microsoft and $83 million on patents purchased from IBM.

“During the six months ended 30 June 2012, we acquired US$633 million of patents and other intellectual property rights,” said Facebook.

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