Stockholders and specialists from Wall Street to Silicon Valley were shocked after Facebook said it was giving a total of $16 billion in joint cash and stock for WhatsApp, an Internet-based mobile texting app that circumvents the SMS messaging services functioned by the telcos and has more than 450 million users around the world.
It also highlighted Facebook’s true dedication to win the market for messaging. The acquisition presenting a combination of text messaging and social networking will provide a quick way for smartphone users to trade everything ranging from short texts to flirtatious pictures and YouTube clips avoiding the need to pay wireless carriers for messaging services. Facebook stated in January that it had 945 million monthly mobile users, who use the app mainly to check out News Feed and message each other; WhatsApp presently privileges with over 450 million monthly vigorous users, who chat with each other, set statuses, set up group chats, send pictures and videos, and share voice notes.
Mark Zuckerberg, Co-founder and Chief Executive Officer of Facebook revealed that WhatsApp is adding nearly a million users per day. He further posted on his Facebook page, “WhatsApp will complement our existing chat and messaging services to provide new tools for our community. Since WhatsApp and (Facebook) Messenger serve such different and important users, we will continue investing in both." Worth mentioning, smartphone based messaging apps are getting widespread across North America, Asia and Europe. Jonathan Teo, an early investor in Snapchat, another renowned messaging company expressed, “Communication is the one thing that you have to use daily, and it has a strong network effect. Facebook is more about content and has not yet fully figured out communication.” Jan Koum, Co-founder and CEO will join Facebook’s board and the social network will award an additional $3 billion worth of restricted stock units to WhatsApp’s founders as a part of deal.
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