Is Whatsapp sold to Facebook

In a play to dominate messaging on phones and also the Internet, Facebook has actually obtained WhatsApp for $19 billion. Is Whatsapp Sold To Facebook: That's a stunning sum for the five-year old firm. Yet WhatsApp has been able to hold its weight against messaging heavyweights like Twitter (TWTR), Google (GOOG) as well as Microsoft's (MSFT) Skype. WhatsApp has upwards of 450 million users, as well as it is adding an additional million users daily.

Is Whatsapp Sold To Facebook<br/>

Is Whatsapp Sold To Facebook


Describing WhatsApp's rising growth, Facebook Chief Executive Officer Mark Zuckerberg stated on a teleconference, "No person in the background of the world has actually done anything like that."

WhatsApp is the most prominent messaging app for smartphones, according to OnDevice Research.

Buying WhatsApp will only reinforce Facebook's currently solid position in the congested messaging world. Carrier, Facebook's a standalone messaging application for mobile devices, is second only to WhatsApp in its share of the mobile phone market.

Comparable to conventional message messaging, WhatsApp permits individuals to link by means of their cellular phone numbers. Yet rather than acquiring texting fees, WhatsApp sends out the real messages over mobile broadband. That makes WhatsApp particularly inexpensive for interacting with people overseas.

That kind of mobile messaging services have come to be hugely preferred, with twice as several messages sent over the mobile Internet than by means of standard messages, according to Deloitte. But most of the messaging sector's revenue is still driven by text messaging.

On the teleconference, Facebook claimed it is not looking to drive revenue from WhatsApp in the close to term, instead focusing on growth. Zuckerberg said he does not anticipate trying to strongly grow WhatsApp's revenue till the service gets to "billions" of customers.

WhatsApp presently charges a dollar a year after giving consumers their first year of use absolutely free. WhatsApp CEO Jan Koum said on the teleconference that WhatsApp's business model is currently successful.

That shows Facebook purchased WhatsApp to add value to its existing messaging services, as well as for the long-term potential of the business.

Facebook got Instagram for $1 billion in 2012 for comparable factors: As young social media network customers gravitated towards photo-sharing, Facebook wanted to scoop up what could have ultimately end up being a big competitor.

Like Instagram, WhatsApp will work as an independent device within Facebook, with all the existing staff members coming in as part of the deal.

Facebook (FB) claimed it will pay WhatsApp $4 billion in cash money as well as $12 billion in stock. WhatsApp's creators and team will be eligible for for one more $3 billion in stock gives to be paid out if they stay employed by Facebook for 4 years. Koum will likewise join Facebook's board of supervisors.