Did Facebook Buy Whatsapp

In a play to control messaging on phones as well as the Web, Facebook has obtained WhatsApp for $19 billion. Did Facebook Buy Whatsapp: That's a sensational amount for the five-year old company. Yet WhatsApp has actually been able to hold its weight versus messaging heavyweights like Twitter (TWTR), Google (GOOG) and Microsoft's (MSFT) Skype. WhatsApp has upwards of 450 million individuals, and also it is including an additional million users everyday.

Did Facebook Buy Whatsapp<br/>

Did Facebook Buy Whatsapp


Describing WhatsApp's skyrocketing growth, Facebook CEO Mark Zuckerberg said on a conference call, "No one in the background of the world has done anything like that."

WhatsApp is one of the most preferred messaging application for smartphones, according to OnDevice Research.

Buying WhatsApp will only strengthen Facebook's currently strong setting in the congested messaging globe. Messenger, Facebook's a standalone messaging app for smart phones, is second only to WhatsApp in its share of the smartphone market.

Similar to typical text messaging, WhatsApp allows people to link by means of their cellphone numbers. But rather than racking up texting charges, WhatsApp sends out the real messages over mobile broadband. That makes WhatsApp particularly inexpensive for connecting with people overseas.

That sort of mobile messaging services have actually come to be extremely popular, with two times as several messages sent over the mobile Web than using standard messages, according to Deloitte. Yet a lot of the messaging industry's profits is still driven by text messaging.

On the conference call, Facebook said it is not aiming to drive earnings from WhatsApp in the close to term, rather concentrating on growth. Zuckerberg stated he does not expect attempting to strongly grow WhatsApp's revenue until the solution gets to "billions" of individuals.

WhatsApp currently bills a dollar a year after giving consumers their initial year of use for free. WhatsApp CEO Jan Koum claimed on the conference call that WhatsApp's organisation version is already effective.

That indicates Facebook acquired WhatsApp to include value to its existing messaging services, in addition to for the lasting capacity of the firm.

Facebook purchased Instagram for $1 billion in 2012 for comparable reasons: As young social network customers gravitated in the direction of photo-sharing, Facebook intended to scoop up what might have eventually become a large rival.

Like Instagram, WhatsApp will work as an autonomous system within Facebook, with all the existing employees being available in as part of the deal.

Facebook (FB) claimed it will pay WhatsApp $4 billion in money and also $12 billion in supply. WhatsApp's owners and also staff will certainly be eligible for for an additional $3 billion in stock grants to be paid out if they continue to be utilized by Facebook for 4 years. Koum will certainly likewise sign up with Facebook's board of supervisors.