Meta's acquisition of the analytics app Onavo a decade ago has had a significant impact on the company's product and business decisions, including its efforts to emulate Snapchat. Onavo, founded by Guy Rosen and Roi Tiger, was acquired by Facebook in 2013, with Rosen later becoming Meta's chief information security officer and Tiger holding a high-ranking technical position until 2022.
Court documents unsealed in an ongoing lawsuit reveal that Onavo played a crucial role in Meta's strategies for acquiring, launching, and evolving its products. Internal communications among top Meta executives, such as CEO Mark Zuckerberg and former COO Sheryl Sandberg, shed light on how Onavo's data influenced decision-making.
Onavo's expertise in reverse engineering other apps allowed Facebook to identify emerging trends in the market. For instance, Onavo's insights revealed the popularity of messaging apps like Snapchat and WhatsApp, leading to Facebook's unsuccessful attempt to acquire Snapchat in 2013 and the successful acquisition of WhatsApp in 2014.
Following Zuckerberg's directive, a team within Onavo was tasked with monitoring user behavior on competing platforms like Snapchat, Amazon, and YouTube. This initiative eventually contributed to the development of Instagram Stories, a feature similar to Snapchat's disappearing posts.
Despite the similarities between Instagram Stories and Snapchat, Meta has never acknowledged directly copying its competitor. Sandberg praised Onavo's value during a meeting, referring to it as a 'great acquisition' that continued to yield benefits for the company.
However, concerns over privacy led Meta to remove Onavo from app stores in 2019 after reports surfaced linking it to user data tracking. Before its acquisition, Onavo was recognized for its data compression technology and data monitoring services.
Meta's COO highlighted the company's proficiency in market research, emphasizing the unique insights gained through Onavo. While acknowledging the competitive advantage it provided, Meta executives were cautious about publicly discussing Onavo's role in their operations.
Despite its controversial history, Onavo's impact on Meta's growth and decision-making processes remains evident, underscoring the complex interplay between data analytics, competition, and innovation in the tech industry.
