Is WhatsApp Worth 19B?

Facebook WhatsApp

Facebook recently completed the acquisition of WhatsApp — the popular mobile messaging giant — and its 450 million users. Of those users, a staggering 70% of them are active on WhatsApp on a daily basis. The app is en-route to 1 billion users and many expect the 4 year old service to hit the mark relatively quickly. According to Facebook, the two services will remain separate.

The big question is; Why would Facebook drop that kind of money on WhatsApp? Some experts are saying it is to stay relevant in the mobile messaging market. Facebook has been slow to offer any sort of meaningful mobile messaging solutions. Their recent Facebook Messenger app has been a step in the right direction but may be too little too late. It seems that the acquisition could correct Facebook’s belated and inadequate mobile messaging services and will allow the company to calmly wipe the egg from its face. They took the easy way out at the cost of big cash.

Next question; How will they regain that expense? WhatsApp operates without advertisement and they claim that will remain through the Facebook acquisition. Could they mine for big data? Or do they simply want to revel in the middle of the massive network they have just inherited?

I suspect we are looking at the new to-be Facebook Messenger. I also expect that the Facebook integration in WhatsApp will continue to pervade until the distinction is unintelligible. Then Facebook will be omnipresent in both the hub and the conversations of social interaction. Bingo.

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This entry was posted in Big Data, Data, Facebook, Social Business, Social Media, Social Media ROI and tagged , . Bookmark the permalink.

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