Facebook’s acquisition of Bloomsbury
Facebook (FB) recently announced that it’s acquiring London-based AI startup Bloomsbury AI, as reported by TechCrunch. The social media giant is reportedly paying between $23 million and $30 million in stock and cash to acquire the company. It will give the startup company $5.5 million in cash, with the remaining $17.5 million in restricted Facebook stock.
Facebook making efforts to fight fake news
Facebook has been making efforts to fight the fake news menace after it was revealed that some fake Russian users had misused the platform to influence the US presidential election. Twitter (TWTR) and Alphabet (GOOGL) also faced probes for their alleged roles in spreading fake news that influenced the elections.
The acquisition of Bloomsbury AI is expected to help Facebook combat fake news and tackle other content issues. Bloomsbury AI specializes in natural language processing and allows machines to answer questions related to content. In May, Facebook entered into a partnership with Atlantic Council to detect the spreading of any election-related misinformation or propaganda on its platform. It has also made changes to its Newsfeed to show users fewer posts from various publishers, artists, celebrities, or the general public and instead include more posts from friends and family.
Through these initiatives, Facebook expects to restore user confidence in the platform. Facebook still leads social media platforms with more than 2 billion users, leaving behind Twitter, Snap’s (SNAP) Snapchat, and Microsoft’s (MSFT) Skype with 330 million users. At the end of the first quarter, Facebook had a daily user base of 1.45 billion.