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Report says Facebook was interested in acquiring Xiaomi

Xiaomi Logo - Facebook

According to reports, Facebook contemplated investing in Chinese manufacturer Xiaomi given that it’s one of the fastest growing mobile OEMs in the world. However, Facebook reportedly backed out before doing anything for political reasons. It is said that the CEO of Xiaomi Lei Jun and Facebook’s Mark Zuckerberg met in China over dinner, with a potential acquisition believed to have been discussed as well.

The two companies never met after that, apparently. Given that Facebook is banned in China, it is said that the Xiaomi CEO was hesitant to sign any deal with the company to avoid any unnecessary political tension with the local government.

Facebook is always eager to tap into new horizons which was evident with its acquisition of Instagram and WhatsApp. Financial reasons might have also had a part to play in the deal not going through as Xiaomi is now valued at more than $45 billion and it wouldn’t be a feasible investment for Facebook to make.

Source: Reuters