One Of Facebook's Key Marketing Partners Is In Bankruptcy

Syncapse, the social media marketing management company that had hoped to provide enterprise-level solutions for companies such as Coca-Cola and Johnson & Johnson on Facebook, has filed for Chapter 15 bankruptcy protection in U.S. federal court, Business Insider reported. Syncapse was one of Facebook's "preferred marketing developers," a company that qualifies to serve ads into, and gather analytics from, the social network. The move suggests that the economics of social media marketing, absent being acquired by a bigger company, are more difficult than they may appear. Syncapse is Canadian, so it filed as a foreign company. It listed 100 - 200 creditors and $10-50 million in assets. It claimed liabilities of $1 million - $10 million, according to the court file. The company laid off a majority of roughly 100 employees a few days ago. The company has 154 employees in total throughout the globe. Syncapse had raised $45 million (Canadian) from ABS Capital and Panorama Capital, but that was not enough to tide it through. The company had $9 million in revenue in 2010 (but lost $1.5 million on the bottom line), $12.9 million in 2012 (but lost $12.3 million), and $6.5 million in the first eight months of 2013 (but lost $6.3 million), according to court documents and Bloomberg. Read more.