On February 19, Facebook (FB) announced its purchase of the
WhatsApp, mobile messaging service for $19 billion in cash and stock. The deal
is a big bet for Facebook, which has not been able to convince investors of its
strategy for mobile. Facebook has bought messaging app
WhatsApp in a deal at a total of $19bn (£11.4bn) in cash and shares.
A lot of people wondered why facebook paid so much money for whatsapp. WhatsApp is 100% social. It is the social networking giant's biggest acquisition to date. WhatsApp has more than 450 million monthly users and is popular with people looking to avoid text messaging charges.Facebook offers a login box to drop your phone number at any website or online service. You will be able to simply login with your Facebook account and give the website permission to send you a message on WhatsApp. You can also define, how many messages and within what timeframe and even what type of messages you would like to receive.In a statement announcing the deal, Facebook founder Mark Zuckerberg described WhatsApp's services as "incredibly valuable". WhatsApp allows users to send messages over internet connections, avoiding text messaging fees. The company claims it is currently registering one million new users a day. It makes money by charging users a subscription fee of $1 per year, although it offers a free model as well.
The deal to buy WhatsApp includes $4billion in cash and approximately $12billionn worth of Facebook shares, plus an additional $3bn in stock to WhatsApp's founders and employees at a later date.On a conference call to discuss the deal, WhatsApp co-founder Jan Koum said he planned to operate the firm "independently and autonomously". He will also become a member of Facebook's board of directors."We are excited and honoured to partner with Mark and Facebook as we continue to bring our product to more people around the world," Mr Koum added in a statement. Mr. Zuckerberg said the prospect of a deal was first floated just 11 days ago.
WhatsApp does give Mark Zuckerberg inroads into international markets and, as importantly, to a younger demographic. But what is less clear is whether the finances will add up in the long term.
The Facebook founder said he believed WhatsApp was on track to have a billion users, but insisted he had no plans to place advertising on WhatsApp's interface, saying he did not think advertisements were the best way to make money from messaging systems.“I find this news disappointing that facebook has bought whatsapp. Whatsapp is a handy little app that saves me money in the long term. I was disappointed by the way Facebook, Google and to some extent Apple have integrating stuff. Google plus is not easy to use. I think Whatsapp will also do the same thing. I deactivated Facebook account because I was fed up with Facebook trying to control my life, I am now going to do the same with WhatsApp” said a whatsapp user who was disappointed with this deal.
A lot of people wondered why facebook paid so much money for whatsapp. WhatsApp is 100% social. It is the social networking giant's biggest acquisition to date. WhatsApp has more than 450 million monthly users and is popular with people looking to avoid text messaging charges.Facebook offers a login box to drop your phone number at any website or online service. You will be able to simply login with your Facebook account and give the website permission to send you a message on WhatsApp. You can also define, how many messages and within what timeframe and even what type of messages you would like to receive.In a statement announcing the deal, Facebook founder Mark Zuckerberg described WhatsApp's services as "incredibly valuable". WhatsApp allows users to send messages over internet connections, avoiding text messaging fees. The company claims it is currently registering one million new users a day. It makes money by charging users a subscription fee of $1 per year, although it offers a free model as well.
The deal to buy WhatsApp includes $4billion in cash and approximately $12billionn worth of Facebook shares, plus an additional $3bn in stock to WhatsApp's founders and employees at a later date.On a conference call to discuss the deal, WhatsApp co-founder Jan Koum said he planned to operate the firm "independently and autonomously". He will also become a member of Facebook's board of directors."We are excited and honoured to partner with Mark and Facebook as we continue to bring our product to more people around the world," Mr Koum added in a statement. Mr. Zuckerberg said the prospect of a deal was first floated just 11 days ago.
WhatsApp does give Mark Zuckerberg inroads into international markets and, as importantly, to a younger demographic. But what is less clear is whether the finances will add up in the long term.
The Facebook founder said he believed WhatsApp was on track to have a billion users, but insisted he had no plans to place advertising on WhatsApp's interface, saying he did not think advertisements were the best way to make money from messaging systems.“I find this news disappointing that facebook has bought whatsapp. Whatsapp is a handy little app that saves me money in the long term. I was disappointed by the way Facebook, Google and to some extent Apple have integrating stuff. Google plus is not easy to use. I think Whatsapp will also do the same thing. I deactivated Facebook account because I was fed up with Facebook trying to control my life, I am now going to do the same with WhatsApp” said a whatsapp user who was disappointed with this deal.
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