Facebook to buy messaging app WhatsApp for US$19bn

[webfact]

Facebook to buy messaging app WhatsApp for $19bn

(BBC) Facebook has bought messaging app WhatsApp in a deal worth a total of $19bn (£11.4bn) in cash and shares.

It is the social networking giant's biggest acquisition to date.

WhatsApp has over 450 million monthly users and is popular with people looking to avoid text messaging charges.

In a statement announcing the deal, Facebook founder Mark Zuckerberg described WhatsApp's services as "incredibly valuable".

WhatsApp allows users to send messages over internet connections, avoiding text messaging fees. The company claims it is currently registering one million new users a day.

It makes money by charging users a subscription fee of $1 per year, although it offers a free model as well.

Full story: http://www.bbc.co.uk/news/business-26266689


-- BBC 2014-02-20

[Sayonarax]

No longer safe from prying eyes of the NSA...

[taony]

glad I use Line

[Chicog]

As if any of them are secure when you're passing your messages through someone else's server.

[JoeThePoster]

I'm not afraid, if someone sees photos of the food I eat. Bring it on.

[kotsak]

$19bn! Whatdafuq..

Funny thing if you consider that the creator of the app was rejected by both Twitter and FB for employment..

[Chicog]

I'm not sure if there was breaking news after I posted this story this morning.

[Jeffrey346]

It's 16B

[Chicog]

You'd better tell them that, maybe they'll give you a reward.

The company said in a statement that it would pay $4bn (£2.4bn) in cash and $15bn (£9bn) in Facebook shares as part of the deal.

[lomatopo]

ex-Yahoo-ers, 30 engineers, ~ 45 employees, no marketing budget, $60 million investment = $19 billion. Yowser. Sequoia Capital was the only VC. Shades of 1999?

That said, they do have 450 million customers, 72% of which use the service every day.

[IsaanUSA]

I dont understand how this acquisition can add 19 billion US dollars of value to Facebook. <deleted>? And Viber was just bought for 900 million US dollars equivalent. Crazy.

I wonder what will happen to Line now

[Skint]

450 million users to exploit to targeted promotions.

[IsaanUSA]

450 million users to exploit to targeted promotions.

That's $42 profit needed per person.

[lomatopo]

450 million users to exploit to targeted promotions.

That's $42 profit needed per person.

Well, not exactly. That's just simple division representing the cost of acquiring each "customer". It's a metric, just a single one, used to evaluate the opportunity. Facebook's current customers are valued at $140 (USD) per.

Each deal does not have to "monetized". Some are defensive, others meant to aggregate the user experience (minutes per day). Facebook wants/needs to maintain control in the rapidly changing/expanding mobile space

While Twitter is now a broadcast, or point to multi-point 'messaging' system, WhatsApp! is point to point, Twitter has added a point-to-point messaging capability (or will do so soon).

I guess, ultimately, that FB could have easily created a messaging app/platform, for a lot less than $19 billion, but it might have taken years to get 450 million customers, and a competitor might have snapped up WhatsApp! in the meantime?

Form what I've read WhatsApp! will not be monetized with location-based ads, and will remain somewhat autonomous. Not sure if it will "free-ish" or if the annual fee of 99 cents will continue, continue to be waived, increase?

[Jonmarleesco]

Isn't this now old news?

[IsaanUSA]

Thanks for the reply lomatopo. It still blows my mind though. 19 billion dollars worth for a silly messaging app.

[Chicog]

I guess, ultimately, that FB could have easily created a messaging app/platform, for a lot less than $19 billion

They've got a messaging app, Facebook Messenger. But they want Whatsapp's customers.