How Much Did Facebook Buy Whatsapp for

In a play to dominate messaging on phones and the Internet, Facebook has gotten WhatsApp for $19 billion. How Much Did Facebook Buy Whatsapp For: That's a stunning sum for the five-year old business. Yet WhatsApp has actually been able to hold its weight against messaging heavyweights like Twitter (TWTR), Google (GOOG) and Microsoft's (MSFT) Skype. WhatsApp has upwards of 450 million users, as well as it is including an additional million customers every day.

How Much Did Facebook Buy Whatsapp For<br/>

How Much Did Facebook Buy Whatsapp For

Describing WhatsApp's soaring growth, Facebook CEO Mark Zuckerberg claimed on a teleconference, "No one in the history of the globe has done anything like that."

WhatsApp is one of the most prominent messaging app for mobile phones, according to OnDevice Research study.

Getting WhatsApp will just strengthen Facebook's currently solid position in the crowded messaging world. Messenger, Facebook's a standalone messaging application for smart phones, is 2nd only to WhatsApp in its share of the smart device market.

Similar to typical text messaging, WhatsApp enables people to connect by means of their mobile phone numbers. Yet rather than acquiring texting fees, WhatsApp sends the real messages over mobile broadband. That makes WhatsApp specifically cost effective for communicating with individuals overseas.

That type of mobile messaging services have actually become hugely popular, with two times as lots of messages sent out over the mobile Web than by means of traditional texts, according to Deloitte. But a lot of the messaging market's earnings is still driven by text messaging.

On the conference call, Facebook claimed it is not wanting to drive income from WhatsApp in the near term, rather concentrating on development. Zuckerberg claimed he doesn't anticipate attempting to strongly expand WhatsApp's earnings until the solution reaches "billions" of users.

WhatsApp presently bills a buck a year after giving consumers their initial year of use free of charge. WhatsApp CEO Jan Koum said on the teleconference that WhatsApp's business version is currently effective.

That suggests Facebook purchased WhatsApp to add value to its existing messaging solutions, in addition to for the long-lasting capacity of the company.

Facebook got Instagram for $1 billion in 2012 for comparable factors: As young social network customers was attracted in the direction of photo-sharing, Facebook wished to scoop up what could have eventually come to be a large competitor.

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

Facebook (FB) claimed it will pay WhatsApp $4 billion in cash money and also $12 billion in supply. WhatsApp's creators as well as staff will be qualified for for an additional $3 billion in stock grants to be paid out if they stay employed by Facebook for four years. Koum will likewise sign up with Facebook's board of supervisors.