One Way to Monetize Apps? Get Acquired!

Posted by Nick O'Neill on June 30th, 2008 4:31 PM

Pixverse Logo Techcrunch is reporting that hi5 has acquired one of the application developers that has built apps on their platform. This is the first time that any application developer has been acquired by a platform owner instead of a third-party company looking to expand their reach.

The company which got acquired, Pixverse, has appeared to develop an interesting chatroom which in addition to chat has the avatars of users moving around the screen. I have included a version of the chat room below. It’s an interesting way to interact. While it’s an interesting technology, I doubt that the company was acquired for that much.

Unfortunately I doubt we’ll ever know the exact number since it wasn’t announced. If you are looking for a fun way to chat while browsing through hi5, this looks like a pretty good solution. Based on this acquisition, I would doubt that we’ll see hi5 launching their own instant messaging solution anytime soon. Conversely, perhaps the acquisition was to expand upon the existing service.

Do you think the chat room below is useful? How much would you pay to acquire it?

Viewing 46 Comments

Travel 2 months ago 1 point
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I'm waiting for the 3.0 version to come!

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5 /people/xglobetrotter/ /people/xglobetrotter/following/ http://www.yukiba.com/

Pat_R 9 months ago 1 point
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I think this will really benefit hi5, and make it more user-friendly, and popular. muffin, you are right, it will be hard to compete though, good luck hi5

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muffin9129 9 months ago 1 point
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I think they have done some interesting things to Hi5 and this chat reform may work, but to compete with Facebook they are going to have to come up with something a little better then this I think. I do not think I would pay for it, but I may utilize it if it were free.
muffin9129
http://productreviewsby.me/

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allergy symptoms 9 months ago 1 point
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am a user of Hi5 but i doesn't seems interesting to me.Facebook is better.

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1 /people/sgjames18/ /people/sgjames18/following/ http://www.askphd.net

bordüre 9 months ago 1 point
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The question might spark a good conversation, but I’m assuming that at its essence it’s not suggesting that this is truly a viable option across the board?

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http://www.bordueren24.de/

bordüren 9 months ago 1 point
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The question might spark a good conversation, but I’m assuming that at its essence it’s not suggesting that this is truly a viable option across the board…?

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http://www.bordueren24.de/

fish tanks 10 months ago 1 point
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I think facebook is even better than myspace.

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http://www.ifishny.org/

Manchester Web Design 10 months ago 1 point
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Face book is so much better then hi5.

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http://www.totallydesign.co.uk/

Savings Accounts 10 months ago 1 point
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Hi5 looks like a second class citizen comparing to Facebook.

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Flights to France 10 months ago 1 point
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Hi-Fi really sucks. I just created a Hi-fi account just because my friend had sent me a request. But i got really pissed off in a week. After using facebook its totally annoying to manage with this crap. I think it shall not go too far.

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http://franceflights.info/

Mattresses 11 months ago 1 point
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Yes we have heard many cases like Skype etc.. Pixverse is another one.. Acquisition is very positive I would say...

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Obat 8 months ago 1 point
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Agree with that :-)

As long as no one get sacked

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Wedding Ideas 11 months ago 1 point
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Yes we usually see the potential SME sector getting acquired..

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Wedding Bands 12 months ago 1 point
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I have worked with Pix verse, though not anymore I quit for my own Consultancy, that company is great and really thinks out of the box.. I always miss those days when I was working there.. so much to learn..

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Acne Scar Removal 12 months ago 1 point
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The chat room looks good and useful, however, I am really not sure if I would pay for it.. only if it is very nominal, not hurting much on my pockets..

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Hair Loss Treatment 1 year ago 1 point
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I had a friend working in PixVerse, they really have some very good innovations and as per their research they had lot more coming in.. this may be one reason for the acquisition..

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German Shepherd Puppies 1 year ago 1 point
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Mergers and Acquisitions as we have seen has always been in the scenes, whether small or big but will always be a part of business..

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HotelBooker 1 year ago 1 point
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you can compare hi5 and facebook. they are completely different.

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seo 1 year ago 1 point
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I think the likes of Facebook will win out in th end...

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http://www.micrositez.co.uk

Background Check 1 year ago 1 point
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Hysterical, this ain't an option anymore :)

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fliesenshop 1 year ago 1 point
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No! this is a teeny application. nothing I can work with.

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http://www.fliesen24.com

ryanlow 1 year ago 1 point
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This might be fascinating for the start but I guess it won’t last for long unless they make new implementations to it such as able to have customization, probably on making it fun-looking or maybe other better usability content.

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Property Singapore 1 year ago 1 point
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It appears to me that hi-5 is trying to create some fresh new concepts to attract the teenagers. With the ability to move around, they might have thoughts of like the person wants to know more about you.

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jonaw 1 year ago 1 point
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What's the point of having it movable when it serve no purpose? I felt that this creation is redundant. Unless its like sort of game that probably your face will be included to create the atmosphere.A waste of money for acquisition.

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calling cards 1 year ago 1 point
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I liked a chat, original design, the simplicity moving pictures does its bright and cheerful.

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ezditto 1 year ago 1 point
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Did Hi5 maintain its original features?

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ezdisqus1 1 year ago 1 point
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It doesn't look appealing.Probably they should do something to it.

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replicaloh 1 year ago 1 point
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Having movable icons and that's it?Is there any benefits from having it movable?Or any functions that are tag to it?

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dupleang 1 year ago 1 point
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Is there any other features other than chatting?I guess its more on innovative but not practical.

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SEO 1 year ago 1 point
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It's not looking that Hi5 would have a long run.. Indeed no comparison with Facebook..

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senuke 8 months ago 1 point
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I think that Facebook is much better.

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Rückenschmerzen 1 year ago 1 point
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Hi5 is worse then Facebook indeed.

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Obat Kanker 1 year ago 2 points
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Acquiring companies is the fastest way to grow big. When they get really big and have good revenue streams coming in, they could do a reverse takeover of a failing listed firm and get listed straight away.

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physiotherapy 1 year ago 1 point
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This is probably a bad time to get acquired...

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http://painrelief.sg/

Juegos Gratis 1 year ago 1 point
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Hi5 has nothing to do with Facebook... They won't go far

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http://www.virtujuegos.com/

The Meta Secret 1 year ago 5 points
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It's been awhile since I last heard of Web 2.0 acquisitions. I think the funds kind of all tight up and investors are wary with the declining stock prices.

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Knee Pain 1 year ago 3 points
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Yes, I think the Web 2.0 companies are struggling to find VCs now. Many have been hard hit.

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To Quit Smoking 1 year ago 6 points
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I think this is a very strategic move. Pixverse had been making big waves and if Hi5 didn't acquire them, they risked Pixverse being acquired by other competitors. This has been a good acquisition I feel.

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Back Pain 1 year ago 2 points
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It has been a good buy but I was figuring they could have snapped them up at 30% of the acquisition price now.

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Parallel Import Cars 1 year ago 7 points
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I don't think Hi5 will go far. They will have a tough time competing with FaceBook. Their invites also irritates the hell out of me.

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183 /people/pimotor/ /people/pimotor/following/ http://www.pimotor.com

Bijoux 1 year ago 1 point
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Always looking for good ways to make a little money. Thanks for the tips.

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http://www.mesbijoux.net

Singapore Hotel 1 year ago 4 points
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Hi5 looks like a second class citizen comparing to Facebook.

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Online Cricket Games 1 year ago 8 points
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I don't know why people like Hi5. For one I think their look and feel sucks and their viral invitation messages look very intruding comparing to Facebook.

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Cellulite 11 months ago 1 point
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I totally agree here, I used hi5 for 10 days and was totally pissed of by their way of contacting users again and again, I still have that account but I have not used it from last one year.

Jessica

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Ben 1 year ago 1 point
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That is todays internet. Any social web 2.0 site will do good with a bit promotion. People just 'buy' it for no reason.

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Nakeva 1 year ago 2 points
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This is an interesting way to have interactive conversations when you have the likes of Twitter and FriendFeed and not set to one specific social network. For the visually inclined I think it could be promising. If I were on the business end to buy this application I would consider an acquisition and even think of Facebook integration.

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