ESPOO, Finland (
) -- Phone giant
has acquired Web startup
in an attempt to boost its social networking story.
All Things Digital
Web site reported that a deal was imminent early Friday, and Nokia later confirmed the acquisition in a statement released on its own Web site. The deal's value, however, was not disclosed.
Plum, which is backed by
Levensohn Venture Partners
, touts technology for creating social networking groups on the Internet, and counts travel search engine
and the Massachusetts Institute of Technology among its early adopters.
With offices in San Francisco and Cambridge, Mass., Plum is seen as an expert in "microsocial networking," which involves small, more intimate groups of Internet users.
In its statement, Nokia explained that Plum will complement the Finnish firm's Social Location services, which let users create location-based Web content. "Plum-powered groups are ideally suited for families, co-workers, neighborhoods, sports, schools, faith and any other existing social group," it said.
The move could be a shrewd one for the phone manufacturer. Nokia, which faces stiff competition from
Research In Motion (RIM)
Friday by Robert Baird, which warned that it could lose cell-phone market share to its rivals.
Nokia also has a fight on its hands with cell-phone makers
, according to the analyst firm.
Shares of Nokia slipped 14 cents, or 0.92%, to $15.03 in early trading Friday, mirroring the broader dip in tech stocks that saw the Nasdaq fall 0.11%.