Facebook Snaps Up Face-Swapping App Creator Masquerade

2 min read
Brought to you by Reuters

Facebook Inc. is acquiring Masquerade Technologies Inc., creator of the popular face-swapping app MSQRD, as part of efforts by the world's largest social network operator to build its video services.

Wednesday's deal comes nearly three years after the Wall Street Journal reported that photo and video messaging app Snapchat had rejected an offer from Facebook.

Masquerade, which announced the deal on its website, did not disclose financial details.

The deal is more a piece of Facebook's bigger effort to innovate into video, Monness, Crespi, Hardt, & Co. Inc. analyst James Cakmak said.

It is unlikely that Facebook would use Masquerade to significantly draw away Snapchat users, he said.

While Snapchat has features such as bulging eyes, Masquerade allows users to add special effects including animal masks and snow to their photos and video.

Masquerade, backed by Yuri Gurski and Gagarin Capital, said founders Eugene Nevgen, Sergey Gonchar and Eugene Zatepyakin will join Facebook.

The app will continue as a standalone product, Masquerade said.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila)

 

Taking a break from coding to welcome the MSQRD team to Facebook!

Posted by Mark Zuckerberg on Wednesday, March 9, 2016

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur