WhatsApp is a chat platform that has 450 million active users which makes it one of the biggest mobile messaging apps on the market. Facebook has their own messaging app, but that app has not gain as much traction as the company would like. Then with many users fleeing the social network the company needs a way to keep users staying engaged, along with different money streams. Facebook announced their plans for buy WhatsApp for $19 billion in cash and stock. The $16 billion is cash and the other $3 billion will come in the form of stocks over the next 3 years.
The chat service will maintain its brand and existing offices, but it will take advantage of Facebook’s “expertise, resources and scale.” Facebook will take the same approach as it did with Instagram, and so far looks to have gone well so far. I don’t think Facebook will shut down its own messenger app but it should be interesting to see two apps being built alongside each other.
The growth WhatsApp has seen over the past two years has dwarfed Gmail, Facebook, Twitter, and other services that have seen rapid growth. The CEO Jan Koum of WhatsApp said users don’t need to worry about ads “interrupting your communication.” This means we could see the two companies find a way to send ads to users but without bothering you in a way that other companies have done. What will happen to the app could make or break Facebook as a company, and the next few years will determine if the company will survive.
Tell us in the comments what you think about Facebook buying WhatsApp.