Feb 20, 2014

Facebook acquires WhatsApp for $16 billion

Oh Yes, you read it right just like everyone else in a moment of shock, Facebook did bought the Whatsapp for $16 billion thus making it a one sided war on the mobile front. Facebook will be paying the $4 billion in cash, $12 billion in Facebook Shares & the additional $3 billion in vesting restricted stock units for the WhatsApp team over the next four years.

People might call it a foolish move or the shopping gone wrong but at present Facebook will be enjoying the success party of having most of the mobile traffic in their pocket. After having Instagram already in their pocket, messaging was the only front where they couldn't make a dent in the space as it was way to crowded & Facebook realized the potential of mobile market a bit late so to strengthen that front they went out shopping & have come back very strongly. 

With the deal Facebook will add 450 million more users to its pocket as thats the registered number of users on whatsapp at the time of acquisition. Though Facebook will keep Whatsapp as an independent entity just like Instagrm but then it will continue to serve it as a competitor plus as a sibling also to Facebook messenger. 

So doesn't matter who will be at loss or profit  after this deal, users can continue to use the respective services without any worry though the shock of this deal might last a bit longer.

No comments:

Post a Comment