In a play to dominate messaging on phones as well as the Web, Facebook has obtained WhatsApp for $19 billion. How Much Did Facebook Buy Whatsapp For: That's a spectacular sum for the five-year old firm. But WhatsApp has been able to hold its weight against messaging heavyweights like Twitter (TWTR), Google (GOOG) as well as Microsoft's (MSFT) Skype. WhatsApp has upwards of 450 million users, as well as it is including an extra million customers each day.
How Much Did Facebook Buy Whatsapp For
Describing WhatsApp's skyrocketing development, Facebook Chief Executive Officer Mark Zuckerberg said on a conference call, "Nobody in the history of the world has done anything like that."
WhatsApp is one of the most preferred messaging app for mobile phones, according to OnDevice Research.
Acquiring WhatsApp will only boost Facebook's currently strong placement in the congested messaging globe. Carrier, Facebook's a standalone messaging application for mobile phones, is 2nd only to WhatsApp in its share of the mobile phone market.
Similar to conventional message messaging, WhatsApp enables individuals to connect via their cellular phone numbers. But instead of racking up texting fees, WhatsApp sends out the actual messages over mobile broadband. That makes WhatsApp particularly cost effective for connecting with people overseas.
That type of mobile messaging solutions have actually become hugely preferred, with twice as many messages sent over the mobile Net than using typical messages, according to Deloitte. However a lot of the messaging sector's income is still driven by text messaging.
On the teleconference, Facebook claimed it is not wanting to drive profits from WhatsApp in the near term, rather focusing on growth. Zuckerberg claimed he does not anticipate attempting to aggressively grow WhatsApp's earnings till the solution reaches "billions" of users.
WhatsApp presently bills a dollar a year after offering consumers their first year of use completely free. WhatsApp CEO Jan Koum stated on the conference call that WhatsApp's service design is currently successful.
That indicates Facebook purchased WhatsApp to add value to its existing messaging services, in addition to for the long-lasting possibility of the company.
Facebook acquired Instagram for $1 billion in 2012 for comparable factors: As young social network individuals gravitated towards photo-sharing, Facebook wanted to scoop up what might have eventually become a large rival.
Like Instagram, WhatsApp will work as an autonomous unit within Facebook, with all the existing staff members can be found in as part of the offer.
Facebook (FB) said it will certainly pay WhatsApp $4 billion in cash as well as $12 billion in supply. WhatsApp's owners and team will be qualified for for an additional $3 billion in stock gives to be paid if they continue to be utilized by Facebook for 4 years. Koum will certainly additionally join Facebook's board of supervisors.
