Meta to divest Kustomer to focus on fastest growing business messaging offerings
Justin Sullivan


In order to re-focus on its core business, Meta Platforms (NASDAQ:META) plans to offload Kustomer, a business-software company it bought last year in one of its largest acquisitions valuing the latter at $1B.
While the acquisition deal was initiated in 2020 by Meta in order to enable businesses to use its WhatsApp and Messenger apps for customer service, it closed in 2022 post extensive regulatory scrutiny.

The revenue curve of the acquired company seems to have flattened while it has burned through around $200M between its operation and one-time expenses.
"In light of Metaâs efficiency efforts, weâve made the decision to focus on our fastest growing business messaging offerings, including the monetization opportunity for WhatsApp," Meta spokesperson stated as reported by WSJ.
In the planned divestiture, Kustomerâs valuation is expected to be a small fraction of what Meta paid for it led by its recent weakening financial performance.
Meta has not decided whether it could spin off the business or try and sell it but will continue to support Kustomer's product and customer base throughout this process.
Kustomer founders Brad Birnbaum and Jeremy Suriel have been reaching out to venture firms to try to raise money to buy back the business and fund losses.