By nickoneill on January 2, 2008 7:34 PM

Breaking: Buddy Media Acquires Some Serious Applications

Buddy Media, a New York based Facebook application development company, has announced their acquisition of ChipIn, Inc. Previous rumors had surfaced that Carnet Williams, CEO of ChipIn, Inc., was accepting offers from a number of application firms. The combined network owned by ChipIn, Inc. accounts for over 150 million monthly unique visitors. With this move, Buddy Media has officially become one of the leading application developers for Facebook.

The announcement by Michael Lazerow, CEO of Buddy Media, highlights the the massive revenue potential of these applications. As Lazerow stated, “Lionsgate Entertainment used the application to promote the werewolf movie, Skinwalkers, spending $15,000 a month to embed a promotional video inside the apps.” As I have previously highlighted on my AllFacebook blog, brand partnerships will be critical for the survival of Facebook application development companies. Buddy Media is strategically located in New York City to help build these relationships.

Over a month ago I received rumors that Carnet Williams was entertaining offers worth millions of dollars. As a result, I would guess that this acquisition was a combination of both cash and ownership in a more stable company. This acquisition illustrates the importance of partnerships and acquisitions in the highly volatile market of Facebook applications. This is a great move by Buddy Media and it will be interesting to see how they maintain their dominance in such high risk environment. If you’d like to read more about the acquisition go check out the Buddy Media blog post.

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Ã‚ Clarification

Carnet has clarified that the entire company wasn’t acquired but instead the set of applications.Ã‚ ChipIn, Inc. continues to pursue new business ventures.Ã‚ Read more about the story over on the ChipIn blog.