Facebook announces App Store ahead of $90bn IPO
FACEBOOK yesterday announced plans to launch its own application store, opening up a new revenue stream and allowing it to charge an upfront fee for software.
The announcement comes ahead of the internet giant’s long-waited IPO, due next week in New York which could value the firm at up to $96bn (£59bn).
Facebook makes most of its revenue from online ads, although it also collects fees when consumers purchase goods from within social apps, such as Zynga’s Farmville.
But the App Centre will, for the first time, allow software developers to sell Facebook apps to consumers at a flat price.
“Many developers have been successful with in-app purchases, but to support more types of apps, we will give developers the option to offer paid apps,” Facebook’s Aaron Brady said. As with its existing Facebook Credits scheme, the company will keep 30 per cent of all revenue generated on its platform.
Meanwhile reports last night suggested that a routine US competition probe into Facebook’s $1bn purchase of photo sharing website Instagram could delay the deal until later in 2012.