The Secret Why Facebook Buys WhatsApp for $19 Billion Tags: facebook, whatsapp, mark zuckerberg,

1. The Secret Why Facebook Buys WhatsApp for $19 Billion!
Presentation By: Aiman

2. Facebook continues to build upon its colossal empire
through strategic acquisitions, with instant-messaging
platform WhatsApp the latest service to be snapped up by
the social media giant.
Facebook will pay $16 billion – $4 billion cash and $12
billion in stock – for the deal. The agreement also
provides for an additional $3 billion in restricted stock units
to be granted to WhatsApp’s founders and employees
that will vest over four years subsequent to closing.
Over 450 million people use WhatsApp each month, 70
percent of whom are active daily users. The app is currently
adding more than one million new registered users per day.
The acquisition supports Facebook and WhatsApp’s shared
mission to bring more connectivity and utility to the
world by delivering core internet services efficiently and
affordably. The combination will help accelerate growth
and user engagement across both companies.
FB CEO Mark Zuckerberg said: “WhatsApp is on a path to
connect 1 billion people. The services that reach that
milestone are all incredibly valuable.”

3. The WhatsApp deal far exceeds the $1 billion that
Facebook paid to acquire Instagram in 2012, as well as the
$3 billion offer it made for Snapchat…which was turned
down late last year.
What does this mean for WhatsApp users?
According to a WhatsApp blog post, the company will
remain autonomous and operate independently. Users can
continue to enjoy the service for a nominal fee, anywhere in
the world, on any smartphone.
No advertising is on the horizon either!
Why this deal’s smart for Facebook
The rumour mill re users abandoning Facebook en masse
has been in full swing over the past six or so months,
meanwhile statistics for various IM platforms – including
WhatsApp – indicate solid and steady growth.

4. Facebook, which recently turned 10, is crafting a clever
contingency plan by collecting popular social networks
outside its own. The company’s Messenger app – while still
popular – came a little too late to the IM game…costing
it a substantial loss of market share. The gap between
Messenger and WhatsApp user numbers, too wide to
bridge, ultimately left FB with two options – throwing in
the towel for the instant messaging game, or throwing a
heap of cash at a competitor.
With over 1.2 billion registered users, Facebook is the
largest social network in the world – some say it’s too
big to fail, but it’s clearly taking no chances.
Do you use WhatsApp and/or Messenger? Which do you
prefer and why? Please leave your comments below.

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