Facebook parent Meta Platforms Inc. is considering different divestiture options for Kustomer, the customer service software company it acquired for $1 billion in 2020, as part of a plan for broader cost cuts.
(Bloomberg) — Facebook parent Meta Platforms Inc. is considering different divestiture options for Kustomer, the customer service software company it acquired for $1 billion in 2020, as part of a plan for broader cost cuts.
Meta hasn’t yet decided what to do with Kustomer but could spin off the business or try and sell it, according to a person familiar with the matter.
“In light of Meta’s efficiency efforts, we’ve made the decision to focus on our fastest growing business messaging offerings, including the monetization opportunity for WhatsApp,” a Meta spokesperson said in a statement. “We are currently exploring strategic alternatives for Kustomer and will continue to support Kustomer’s product and customer base throughout this process.”
Meta bought Kustomer in late 2020 as part of its strategy to build more customer service tools inside of WhatsApp and Messenger. The company builds software so that businesses can manage customer messages from multiple services on one central dashboard and was seen as central to Meta’s efforts to monetize its messaging apps.
The deal’s closing was delayed after the Federal Trade Commission sued Meta over the acquisition, but regulatory issues were resolved in early 2022.
The Wall Street Journal first reported on Meta’s plans for Kustomer.
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