The biggest acquisition of Facebook till date – 19 times the Instagram deal (closest so far). It is about to buy WhatsApp – the biggest messaging app now. The deal is expected to be carried out at $4 billion in cash and $12 billion in facebook stocks and $3 billion more to be paid to Whatsapp’s co-founders and 50-odd employees(Yes, 50). Trade analysts are pointing out that paying by stocks is wise as they are at an all time high now. But is WhatsApp worth a whopping 19 billion dollars?
WhatsApp, founded by ex-Yahoo engineers Jan Koum and Brian Acton has been ruling the roost when it comes to messaging apps. This app has been a great alternative to SMS. It uses the internet to send text, photos and videos among users. It is a great feat of truly cross platform mobile app development. It works on iOS, Android, BlackBerry, Windows and even Nokia’s s40 series. It has 450 million active users. It has no ads. Revenue comes from 1 USD per year from each user, and this comes after using it free of cost for a year. Zuckerberg has been quick to describe WhatsApp’s services as “incredibly valuable”. The company claims that it is adding around a million users a day. The biggest thing that worked for WhatsApp’s success is that it is a 100% pure messaging app. Unlike WeChat, Line, Viber and KakaoTal, WhatsApp;s business model is different. As co-founder Koum puts it “No ads. No games. No gimmicks.”.
As part of the deal, Koum will be joining the board of directors at Facebook.
WHATSAPP GOING TO FACEBOOK AT $19 BILLION?