In a play to dominate messaging on phones and the Web, Facebook has gotten WhatsApp for $19 billion. Did Facebook Bought Whatsapp: That's a sensational amount for the five-year old business. Yet WhatsApp has actually been able to hold its weight versus messaging heavyweights like Twitter (TWTR), Google (GOOG) and Microsoft's (MSFT) Skype. WhatsApp has upwards of 450 million users, as well as it is adding an added million individuals every day.
Did Facebook Bought Whatsapp
Describing WhatsApp's skyrocketing growth, Facebook Chief Executive Officer Mark Zuckerberg stated on a teleconference, "No person in the background of the world has done anything like that."
WhatsApp is one of the most preferred messaging app for smart devices, according to OnDevice Research.
Acquiring WhatsApp will only reinforce Facebook's already strong placement in the crowded messaging world. Carrier, Facebook's a standalone messaging application for mobile phones, is 2nd only to WhatsApp in its share of the smart device market.
Similar to conventional message messaging, WhatsApp permits individuals to attach via their cellular phone numbers. Yet rather than racking up texting costs, WhatsApp sends the actual messages over mobile broadband. That makes WhatsApp particularly economical for connecting with individuals overseas.
That sort of mobile messaging services have become wildly popular, with twice as several messages sent over the mobile Internet than through traditional texts, according to Deloitte. However the majority of the messaging sector's profits is still driven by text messaging.
On the teleconference, Facebook claimed it is not aiming to drive earnings from WhatsApp in the near term, instead focusing on growth. Zuckerberg said he doesn't anticipate trying to strongly expand WhatsApp's profits up until the service gets to "billions" of customers.
WhatsApp currently charges a dollar a year after giving customers their initial year of use for free. WhatsApp CEO Jan Koum claimed on the teleconference that WhatsApp's service model is currently successful.
That indicates Facebook got WhatsApp to add value to its existing messaging solutions, along with for the lasting potential of the firm.
Facebook bought Instagram for $1 billion in 2012 for similar reasons: As young social media individuals moved in the direction of photo-sharing, Facebook wished to scoop up what could have ultimately end up being a big rival.
Like Instagram, WhatsApp will certainly function as an independent device within Facebook, with all the existing staff members coming in as part of the deal.
Facebook (FB) stated it will certainly pay WhatsApp $4 billion in cash money as well as $12 billion in supply. WhatsApp's creators and also staff will be qualified for for another $3 billion in supply gives to be paid out if they continue to be employed by Facebook for four years. Koum will certainly also join Facebook's board of supervisors.