Meerkat’s latest update: the livestreaming app is shifting focus from Twitter to Facebook. Meerkat users can now sign in with a Facebook account that automatically connects to all their Facebook friends or followers.
Meerkat got a harsh blow in March when Twitter blocked it from accessing its users to prioritize its own competing livestream service Periscope. Facebook, on the other hand, has been helpful – suggesting that the social network has no plans to build its own livestreaming app.
It’s also possible that Facebook sees Meerkat as a potential acquisition. The social network has a long list of successful targets like WhatsApp and Instagram. L2’s Scott Galloway predicted in a recent talk that the latter would bring in $1.5 billion in revenue within three years, making it a “great acquisition choice” as young people drifted from Facebook to Instagram.
This roster of acquisitions is just one reason that L2 is sticking to its 2011 prediction that Facebook – which just surpassed the value of Walmart – is set to become the most valuable company in the world. Another reason is Facebook’s remarkable pivot to mobile. Three years ago, Facebook had yet to adapt to the growing predominance of mobile devices. Today, nearly $2.5 billion comes from mobile ads, accounting for 69% of total ad revenue. Facebook’s native videos are also challenging YouTube’s dominance.
The social network has successfully capitalized on brands’ desire to build a following. After convincing brands to spend millions on establishing communities, Facebook then convinced them to pay for access to those communities. At the same time, it has become one of the largest and most profitable content platforms, despite not being a content creator – making the social network one of the biggest winners in digital media.