Is Facebook Inc (FB) Betting Big On The Video Tech Startup QuickFire Networks?

Facebook Inc (NASDAQ:FB) is not a stranger in placing big bets on small startups and acquisition. In a recent move Facebook Inc (NASDAQ:FB) has acquired a video tech startup, QuickFire Networks. This startup mainly targets compressing video files and enable faster upload/download to/from the network. What does Facebook Inc (NASDAQ:FB) achieve by acquiring this startup? Tom’s Guide Reviews Editor, Mike Prospero talked on CNBC about the acquisition and the benefits that Facebook Inc (NASDAQ:FB) might get out of it.

Prospero mentioned that this could mean that the Facebook Inc (NASDAQ:FB) users might be able to upload their videos much faster than they were doing. This technology from QuickFire Networks might enable compression of bigger videos to enable easier upload into the portal. With this newly acquired ability, will Facebook Inc (NASDAQ:FB) pose a threat to other video sites like YouTube.

Prospero feels that YouTube might face some serious threat because of this move from Facebook Inc (NASDAQ:FB). He pointed out that it is a $1 billion business for YouTube in the last year and he feels that if Facebook Inc (NASDAQ:FB) gets even a small chunk of it through this newly acquired technology, it could create some problems for YouTube.

Next question that comes in mind is how will this newly acquired skill help Facebook and its users.

“Well, You can see the rise of Facebook stars, just like you see on YouTube. With more videos up there and more ways of getting it out to people and more ways of capitalizing on it, you can see a renewed emphasis of personalities on Facebook,” Prospero said.

All the big names giving more emphasis to videos shows the importance that the video content is gaining these days. Prospero thinks that it has become much easier to take videos these days using the mobile devices and view it on them. He feels that this is the main reason behind increases emphasis on video content by these tech giants.

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