Wal Mart Acquires Kosmix For Social Initiatives
In a time of buyouts, Wal-Mart is buying Kosmix, a social media company that is based in the heart of silicon valley, Mountain View, California. Although Wal-Mart did not mention specifics of the agreement, they did say that the acquisition will be instrumental in rolling out new social and mobile initiatives.
Wal-Mart continued in saying that the @WalmartLabs team will work hard on building its social and mobile commerce strategy in efforts to keep its online and in-store avenues in tact. I believe this is a necessary move for Wal-Mart, a corporation that now has physical stores in 15 countries and e-commerce businesses in nine countries.
The company that was acquired, Kosmix was founded in 2005 by Venky Harinarayan and Anand Rajaraman. Kosmix has since then raised a total of $55 million from Time Warner Investments, Accel Partners, Lightspeed Venture Partners, Dag Ventures, Bezos Expeditions, and a few others. According to All Things Digital, Kosmix writes this on its website, “On any given day, people share 830 million items on Facebook, upload 6.1 million photos to Flickr, add 2.1 million minutes of video to YouTube and send 65 million tweets. Kosmix cuts through this noise to find content that matters to you.” Wal-Mart expects the deal to close before the middle of this year.