Facebook Acquires tbh: A Deep Dive into the Teen Compliment App Acquisition and Social Media Strategy
In the fast-paced world of technology and social media, strategic acquisitions are commonplace. Giants often swallow smaller, burgeoning platforms to neutralize potential threats, absorb innovative features, or simply gain access to new user demographics. One such notable event occurred in October 2017, when Facebook announced its acquisition of tbh, a relatively new iOS application that had rapidly gained traction among teenagers by facilitating the anonymous exchange of prewritten compliments.
At first glance, the acquisition of a compliment-based app might seem like an unusual move for a company primarily known for news feeds, photo sharing, and broad social networking. However, a closer examination reveals a strategic play deeply rooted in Facebook's ongoing efforts to remain relevant to younger users, understand evolving social dynamics, and potentially mitigate some of the negative aspects often associated with online interaction.
The announcement, initially reported by TechCrunch and later confirmed by Facebook, stated that tbh would continue to operate as a standalone app, much like Instagram and WhatsApp did following their respective acquisitions. This approach allowed Facebook to integrate the tbh team and technology while preserving the app's distinct identity and user base, a tactic that had proven successful in maintaining the growth and cultural relevance of its previous major purchases.
The Rise of tbh: A Positive Anomaly in the Anonymous App Space
Launched just a few months prior to the acquisition in August 2017, tbh (which stands for "to be honest") experienced explosive growth. Within weeks, it had topped the App Store charts in several states across the US, particularly resonating with high school students. The app's premise was simple yet ingenious: it allowed users to answer positive multiple-choice polls about their friends. For example, a poll might ask, "Who has the best smile?" or "Who makes me laugh the hardest?" Users would select one of four friends from their contact list who also used the app. The friend who was chosen would receive a notification that someone had picked them for that specific compliment, but the identity of the sender remained anonymous.
This anonymity, combined with the strictly positive nature of the prompts, was tbh's core differentiator. It deliberately sidestepped the common pitfalls that had plagued previous anonymous messaging apps. Platforms like Yik Yak, which allowed users to post anything anonymously within a small radius, often devolved into forums for bullying, harassment, and negativity, ultimately leading to its demise. Sarahah, another anonymous feedback app popular around the same time, also faced criticism for enabling harmful messages despite its stated intention of facilitating constructive feedback.
Tbh's founders – Nikita Bier, Erik Hazzard, Kyle Zaragoza, and Nicolas Ducdodon – had previously experimented with several social apps, including a polling app called Cheng. They intentionally designed tbh to be a safe space, focusing exclusively on positive affirmations. This focus on well-being and positive social interaction struck a chord, particularly among a demographic navigating the often-complex social dynamics of adolescence, both online and off. The app reported over 5 million downloads and more than a billion compliments sent in just a couple of months, demonstrating a clear demand for this type of interaction.
The app's design also contributed to its virality and engagement. Users were notified when friends joined, encouraging network effects. Receiving compliments, even anonymously, provided a dopamine hit and boosted self-esteem, encouraging continued participation. The prewritten prompts removed the pressure of crafting messages, making it easy and quick to participate.
Facebook's Strategic Imperative: Reaching and Understanding Teens
Facebook's interest in tbh was not merely about acquiring a popular app; it was deeply strategic. At the time of the acquisition, Facebook was facing increasing challenges in engaging younger demographics. While its core platform remained dominant globally, teenagers were increasingly flocking to newer, more dynamic platforms like Snapchat and, later, TikTok. Snapchat, in particular, was seen as a significant threat, having popularized ephemeral content and a more casual, visual communication style that resonated strongly with teens.
Facebook had attempted to counter this trend with various initiatives, including launching its own ephemeral features and standalone apps aimed at younger users, often with limited success. The acquisition of Instagram in 2012 had been a masterstroke, securing a photo-sharing platform that successfully attracted and retained a younger audience. The WhatsApp acquisition in 2014 solidified its position in global messaging, another critical communication channel for all age groups, including teens.
Acquiring tbh provided Facebook with several key advantages:
- **Access to the Teen Demographic:** Tbh had proven it could attract and engage high schoolers, a demographic Facebook was keen to understand and retain.
- **Understanding Teen Behavior:** The app offered insights into how teens wanted to interact – specifically, a desire for positive, low-pressure social validation.
- **Innovation in Interaction:** Tbh's polling and anonymous compliment system was a novel interaction model that could potentially be integrated into Facebook's other products or inspire new features.
- **Talent Acquisition:** The tbh team had demonstrated an ability to build a product that achieved rapid product-market fit with a challenging demographic.
Facebook's statement on the acquisition echoed these points, highlighting the shared goal of "building community and enabling people to share in ways that bring us closer together" and expressing admiration for tbh's use of "polling and messaging" to build positive experiences. The acquisition price was reported to be less than $100 million, a relatively small sum for Facebook, especially considering the potential value of gaining a foothold with the teen market and acquiring a successful product team.
The Landscape of Anonymous Apps and the Bullying Problem
The tbh acquisition also needs to be viewed within the broader context of anonymous online platforms and the persistent issue of cyberbullying. For years, anonymous apps had a troubled history. While some aimed to provide spaces for open, uncensored expression, many quickly became breeding grounds for negativity, harassment, and bullying due to the lack of accountability.
Yik Yak, which allowed anonymous posts visible to users within a small geographic radius, was a prime example. Despite periods of popularity, it struggled immensely with moderation and the spread of harmful content, leading to its eventual shutdown in 2017. Ask.fm, another platform where users could ask and answer questions anonymously, also faced significant criticism and controversy over its links to cyberbullying incidents.
Tbh's design was a direct response to these failures. By restricting interaction to prewritten, positive compliments and limiting who could be polled (only existing phone contacts), it created a walled garden designed to prevent the kind of free-form negative expression that plagued other platforms. This focus on positivity was not just a feature; it was the fundamental principle that defined the app and contributed significantly to its initial success and positive reception.
Facebook, having long grappled with issues of content moderation, harassment, and the impact of its platform on users' mental health, likely saw tbh's model as a valuable case study in fostering positive online interactions. Acquiring tbh could have been a way to learn from this model and potentially apply its principles elsewhere within the Facebook ecosystem.
Integration and the Fate of tbh
Following the acquisition, the tbh team joined Facebook's headquarters in Menlo Park. The initial plan was to keep tbh running as a separate app, allowing it to grow its user base and continue its unique approach. This mirrored the successful strategies employed with Instagram and WhatsApp, which maintained their distinct brands and operations while benefiting from Facebook's resources, infrastructure, and expertise in areas like scaling and monetization (though tbh was not yet monetized at the time of acquisition).
However, maintaining momentum in the fickle teen market is challenging, and standalone apps acquired by larger companies don't always thrive. Despite the initial promise and positive reception, tbh's growth eventually slowed. The novelty of the app may have worn off for some users, and competition for teen attention remained fierce. Integrating a small team and product into a massive organization like Facebook also presents cultural and operational challenges.
Ultimately, tbh did not achieve the sustained growth or widespread adoption necessary to justify its continued operation as a standalone product within Facebook. In July 2018, less than a year after the acquisition, Facebook announced that it would be shutting down tbh, along with two other experimental apps, Hello and Moves. Facebook stated that the apps were being shut down because they were not being used frequently, indicating that tbh had failed to maintain user engagement after its initial surge in popularity.
The shutdown of tbh highlights the inherent risks in tech acquisitions, particularly those focused on rapidly changing consumer trends and demographics. While the acquisition provided Facebook with valuable insights and talent, the product itself did not become a lasting part of its portfolio.
Broader Implications for Social Media and Facebook's Strategy
The tbh acquisition, though short-lived in terms of the app's lifespan under Facebook, offers several insights into Facebook's strategic thinking and the dynamics of the social media market in the late 2010s.
Firstly, it underscored Facebook's persistent challenge in attracting and retaining younger users in the face of nimble, innovative competitors. Acquisitions remained a key tool in its arsenal to address this, alongside internal product development.
Secondly, the focus on a "positive" social app like tbh suggested Facebook was exploring ways to counter the negative narratives surrounding its platform, particularly concerning its impact on mental health and its role in facilitating bullying and harassment. While tbh itself didn't last, the lessons learned about designing for positive interactions could theoretically inform future product development within Facebook, Instagram, or other properties.
Thirdly, the acquisition strategy of letting acquired companies run independently, as seen with Instagram and WhatsApp and initially planned for tbh, was a deliberate choice to preserve the unique culture and appeal of successful startups. This contrasts with approaches where acquired companies are immediately and fully integrated, sometimes leading to the alienation of their original user base or the stifling of innovation. The fact that tbh was shut down despite this approach suggests that even with relative independence and Facebook's resources, success is not guaranteed in the volatile social media space.
Finally, the tbh story is a microcosm of the constant evolution and experimentation within the social media industry. Companies are continuously trying to find new ways for people to connect and share, and not every experiment, whether built internally or acquired, will succeed in the long run. The rapid rise and fall of apps like tbh, Yik Yak, and Sarahah demonstrate how quickly trends can shift and how challenging it is to build sustainable online communities, especially among younger users.
In conclusion, Facebook's acquisition of tbh in 2017 was a strategic move aimed at reconnecting with the teen demographic and exploring models for positive online interaction. While the app itself did not survive, the acquisition provided Facebook with valuable insights and talent, reflecting the company's ongoing efforts to adapt to a changing social media landscape and secure its future relevance across all age groups.