"Facebook certainly has a familiar user experience that people love, and could blur the lines between employees and customers in a very compelling way," Koplowitz wrote in a note. He does see some risks for the social network. "To fully compete in the enterprise requires deep and complex capabilities that aren't required in a consumer offering," he wrote.
"It's potentially a new formidable competitor that could address some of the functionality that is currently not addressed by LinkedIn," said Mark Marcon, an analyst at Robert W. Baird, who has the equivalent of a hold rating on LinkedIn. "We have no idea what that Facebook functionality is like, but anything Facebook does won't be taken lightly."
Facebook's workplace tool doesn't currently allow communication with people at other companies, the person familiar said. Vanessa Chan, a spokeswoman at Menlo Park, California-based Facebook, declined to comment on the product.
- Bloomberg