Facebook Shelling Out $19 Billion for WhatsApp

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Facebook Shelling Out $19 Billion for WhatsApp


The tech and business world is abuzz with the reports that Facebook (FB-NASDAQ ) is buying WhatsApp for a whopping US$19 Billion Dollars.

The supposed purchase in cash and stock for the start up rising star in mobile messaging, is apparently Facebook’s way of boosting its appeal to the younger generation.

The largest social network in the world aims to be an even larger influence in the universe as it adds another 450 Million WhatsApp users to its reach.


But more importantly, this move by Facebook is seen by tech industry analysts as Facebook’s attempt to dominate the market of mobile messaging which is looked upon in the industry as the primary battleground in the increasingly transforming mobile future.

The amount of the purchase, although staggering in its loftiness, is considered by many industry experts as a sign of Facebook’s determination and seriousness to implement a synergistic strategy of combining social networking with mobile messaging.


The use of WhatsApp and other mobile messaging apps makes it easy and convenient for users who have internet access, especially the mobile younger crowd, to send anything and everything ? from provocative messages, amusing videos, to flirty pictures, without the need to pass through a wireless carrier, and thus avoiding telecom expenses.


WhatsApp is considered one of the leading apps in the market. Wikipedia describes and provides info on WhatsApp as follows: ? WhatsApp Messenger?is a?proprietary,?cross-platform?instant messaging?subscription service?for?smartphones?with?Internet access. In addition to text messaging, users can send each other images, video, and audio media messages. The client software is available for Google?Android,?BlackBerry OS, Apple?iOS, selected Nokia?Series 40,?Symbian, selected?Nokia Asha platform?and Microsoft?Windows Phone. WhatsApp Inc. was founded in 2009 by American Brian Acton and Ukrainian Jan Koum (also the CEO), both former employees of?Yahoo!, and is based in?Mountain View, Santa Clara County, California.?


Although Facebook has its own messaging system, this acquisition will attract many teenagers who dislike using messaging tools by major social networks like Facebook and instead use apps like WhatsApp and its competitors ( WeChat and Line to name a few).


Lightspeed partner and Snapchat early investor Jeremy Liew reveals a monicker for these teens, ?People are calling them ‘Facebook Nevers.?

Mark Zuckerberg, Facebook’s top dog himself revealed on his FB page that WhatsApp adds about a million new users every day. He adds that ?WhatsApp will complement our existing chat and messaging services to provide new tools for our community…..Since WhatsApp and (Facebook) Messenger serve such different and important users, we will continue investing in both.?



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