For one thing, Facebook has a successful app in Messenger, albeit one with a much smaller user base than WhatsApp. But if you're hoping for such a service to arise from this deal, keep dreaming. And on a certain level, it's appealing to imagine such a future in which all of your messaging is united in one place (even if that one service is owned by Facebook), as opposed to having your communications with a friend spread out over Gchat, iMessage, Facebook Messenger, and other disparate services. Instagram still hasn't been completely devoured by Facebook's core product (though it has been experimenting with ads), and it most likely never will.įacebook made this move as part of its attempt to rule the future of messaging. "There would have been no partnership between our two companies if we had to compromise the core principles that will always define our company, our vision, and our product." Kuom's comments recall Facebook's acquisition of Instagram in 2012. "WhatsApp will remain autonomous and operate independently," Kuom said.
WhatsApp CEO Jan Kuom stated on his website's blog that the user experience through its messenger will remain undisturbed. "The services that reach that milestone are all incredibly valuable." "WhatsApp is on a path to connect 1 billion people," he said in a press release. No doubt Facebook wants to tap into WhatsApp's growth potential, and Zuckerberg's official comments echo that interest. For Facebook, the exact opposite is true. Not to mention that WhatsApp's core user base lies outside U.S. The app also found favor with teenagers, a demographic that Facebook has been trying to reclaim. The messaging service's growth over its four-year history bests even the standard set during Facebook's own fledgling years. WhatsApp's real market value lies with the people who use it. And because of its design sensibilities, the app generates no ad revenue. However, from a revenue standpoint, WhatsApp charges its 450 million users only $0.99 per year, and that's after a free year of use. WhatsApp presents a simple, uncluttered interface with a no-nonsense approach to messaging, letting you text across platforms like iPhone, Android, BlackBerry, and Windows, without paying for SMS through a carrier.
The Mountain View startup, guided by two former Yahoo engineers, does what it does very well. Seen from a short-term monetary point of view, Mark Zuckerberg's eagerness to bring WhatsApp under Facebook's influence would be puzzling. This is one of the biggest tech acquisitions ever and is easily Facebook's most costly corporate maneuver to date. Yesterday, Facebook announced that it would acquire WhatsApp, the fastest growing messenger service in the world, for an eye-popping $19 billion.
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