Why Facebook Acquired WhatsApp

Some of the justifications why Facebook acquired the most popular messaging platform

After shelling out $1 billion on a photo sharing company, Facebook goes for another big deal of $19 for a widely used platform being used by more than 450 million users. The right question to ask now is not 'is it worth it' rather ‘why’ of the spending.

Let’s analyze the wherefores of the acquisition.

1. According to Facebook, WhatsApp has 450 million active users on any given day and this is something Facebook would like to cash in on to add to its revenue. The acquisition also positions the company for even stronger growth on mobile phones, where advertising now makes up the majority of its revenue. Soon users will get to see a variety of subscription models and that will add to the engagement level of Facebook users.

2. WhatsApp, like Instagram, will remain largely independent from the social network,  and this will strengthens its toehold in countries like China where it is blocked. The world’s largest Internet market China for instance has no access to it. However, WhatsApp and Instagram are allowed over there.

3. WhatsApp is the only widely used app  that has a higher rate of engagement than Facebook itself.  Facebook chief Zuckerberg called it ‘an extremely high-quality product with incredibly strong engagement and rapid growth’. This is on its way to have a billion people using the product. So, this would be another tool for FB to leverage and add to its user base.

4. The main objective behind all Zuckerberg initiatives is to connect everyone and own the communication stratum of the planet  and this another indication of that. While this a clear diversification of FB revenue models, this is also an indication of how Facebook wants to control people’ connection on earth.

Here is what FB says, ‘the acquisition supports Facebook and WhatsApp's shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably. The combination will help accelerate growth and user engagement across both companies.’

Air Force 1 Low Flyknit


Comments

intobre's picture

cialis y otros medicamentos https://buycialisuss.com/ - acquistare cialis online Viagra Et La Sante <a href=https://buycialisuss.com/#>Buy Cialis</a> Propecia Patente

Add new comment