Why WhatsApp Worths $19Billion To Facebook?
WhatsApp Journey – 5 years, 50 Staff and $19 Billion- a story that witnessed the largest deal ever in the history of technology sector with its acquisition by Facebook. The deal is bigger but even bigger is the noise about the amount been paid for the acquisition by Facebook. Well, let’s try to see what could have been Facebook’s rationale behind paying such a huge amount for acquisition of WhatsApp.
From the last few years the growth for Facebook as been stagnating as per few reports and this acquisition will fetch another billion users to Facebook’s account. This will help Facebook to grow effectively in asian countries, latin America etc thus helping it to establish itself in places where till date their presence has not been felt. And all of know Facebook that plays very smart with the customers information when it comes to generate revenue from those information, so the larger user base is crucial for the social networking giant.
WhatsApp has been growing at a rate of 450 million active users with 600 million photo uploads compared to 350million on Facebook and so on; hence inspite of Facebook’s tremendous effort to dominate mobile domain with facebook messenger etc the fact remains that it failed miserable. In such a case WhatsApp provides it a platform to enter, dominate and rule the mobile market.
Facebook Targets Future
Advent of smart-phone has facilitated million users on whatsapp which has resulted into decrease of sms usage and increased usage of whatsapp for messaging. Now, if I can foresee, I see Whatsapp as future instead of SMS and with this acquisition Facebook has acquired our messaging system.
Facebook – The Conglomerate
Instagram and now Whatsapp both under one roof of Facebook which has added companies of different attributes and now has reached the status of conglomerate with more than 2 billion active users altogether.
Well, as Zukerberg announced the aim behind the acquisition is “connecting the world’s people” so, now don’t get surprised if you get an option of Login Via Facebook on your WhatsApp account!!!
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