Facebook (before it was rebranded as Meta) was approached by venture capitalists to build its Workplace app and turn it into a new company valued at over $1 billion. But Facebook refused.
Workplace, Facebook’s collaboration tool for businesses, has gained more than seven million paying enterprise users.
It was originally designed as a version of Facebook for its own employees to communicate with each other.
According to a TechCrunch report, Facebook has been approached by corporate investors offering the social network a “proposal,” “separate the organization, they said, and let us support it as a startup.”
A deal would have valued a newly independent workplace as a “unicorn” (at least $1 billion).
Facebook declined the offer because it sees Workplace as a “strategic asset”.
“It helps make Facebook (and Meta) look like an adult,” the report says, citing a source.
Meta and Workplace declined to comment on the report.
Founded as the “work” version of Facebook, Workplace was launched in response to the rise of Slack and other chat apps for office workers.
Large multinationals like Danone, Starbucks, and Booking.com, international nonprofits like Oxfam, and regional leaders like YES Bank in India and the Government Technology Agency in Singapore have all adopted Workplace.
Microsoft and Meta in November last year collaborated to integrate the Teams and Facebook’s Workplace video chat app which will be available to businesses next year at no additional cost.
The integration between Workplace and Teams will allow employees to access Workplace content in Teams without having to switch between the two applications.
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