Facebook Buying Messaging App WhatsApp for $16 Billion
 

Facebook is buying the hugely popular WhatsApp for $16 billion according to a filing with the SEC. The purchase, $4 billion in cash plus $12 billion in Facebook shares and potential for an additional $3 billion in employee stock payouts, will see WhatsApp founder Jan Koum joining Facebook's board of directors.

WhatsApp Messenger is a hugely popular cross-platform messaging app that allows users to chat with individuals or groups, as well as sending files and pictures back and forth.

Back in December, the service bragged that it had 400 million active users, with 100 million of those added in the last four months of 2013. Back in April of 2013, it was rumored that Google was close to acquiring the company for $1 billion -- something WhatsApp denied. Today's sale price reflects the company's tremendous growth over the last several months.

According to Facebook founder Mark Zuckerberg:
WhatsApp will complement our existing chat and messaging services to provide new tools for our community. Facebook Messenger is widely used for chatting with your Facebook friends, and WhatsApp for communicating with all of your contacts and small groups of people. Since WhatsApp and Messenger serve such different and important uses, we will continue investing in both and making them each great products for everyone.
The service is one of many messaging services available on iOS and other mobile platforms, including Apple's own iMessage service integrated into iOS and OS X. Such services have become increasingly popular as users seek to avoid mobile carriers' SMS charges and expand their conversations to include devices not directly connected to cellular service. WhatsApp says that the Facebook and WhatsApp messaging apps will remain standalone for the foreseeable future, and WhatsApp will remain autonomous, operating independently of Facebook.

The company's app is currently the 35th most popular on the App Store. Facebook says WhatsApp's messaging volume is "approaching the entire global telecom SMS volume", roughly 7 trillion message a year.

In April 2012, Facebook purchased Instagram for $1 billion.

Source: http://www.macrumors.com/2014/02/19/facebook-buying-whatsapp/

seems everyone is using that app nowdays even i have it installed lol

viber is way better than whatsapp.. check it out ;)

the 'better' one is the one that your friends are on. whatsapp has 450 million monthly users and adding 1 million a month.

wow never expect this goes for that much money!

i like it too :thumbsup

actually id rather go with the option that doesn't have obvious CIA links :)

Very nice!!!

So what is the benefits of this app over skype (where all your friends actually are)?

fb sweetened the deal, it's $19b now

the social network will grant an additional $3 billion worth of restricted stock units to WhatsApp's founders, including Koum.

I remember when time-warner aol deal was a staggering $25b!

May be valid point, there will be lots of info to mine on that app. Would this be profitable investment under normal circumstances? How many years to recoup investment? 100?

definitely an interesting discussion.

However, i am curious about the if/when regarding phones that are 'data only'

does whatsapp only have 55 employees?
16 billion is a lot of money for those employees!

Why do you think that 16B will go to employees and not owners?

Never. Just like Instagram it's a market share maneuver to draw more into the Facebook ecosystem

16 billion? Where do they even come up with these values? It's like these tech companies just throw ridiculous amounts of money at shit, just because...

Some serious cash involved !

Facebook to buy WhatsApp for $19bn

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.

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

I know, then they up the bid by 3 billion because 16 billion wasn't enough?


.

But whatsapp plans to remain separate from FB ecosystem (just as it is now). Unless they have plans to integrate later.

40/ customer for something that some people pay $1/ hear for. I have it free though. Great dela for facebook. Doh!

It will no doubt be connected to FB and Instagram on the back end. The contents of your chats will influence the ads you see on Facebook.

Never heard for that app till now lol.And i though how 1bil for instagram was overkill

It's a good app, I'm using it. Will make tons of money.

I have never even heard of the app. Looks like it is already on my phone.
I also do not know what it does, and from what you posted, it allows people to send Messages over the Internet without Text Fees..

Umm who doesn't have unlimited texting these days? Unlimited anything?
I could see sending to another country maybe.

Only people I know that use wifi are people without a cell plan and No money...
Wonder how many adds they click on and buy, LOL.

Sure, there is prob some other things this app does, I am just going by the post I quoted..

One word: bubble.

serious bizness

Kids on PAYG for starters, it's huge with them.

i use it all the time.

i use the wifi at home as its much faster than using the mobile line.

They raised the price so closer to $40. They charge some people $1/year. So even if everyone paid it is 40 times revenue. Doh!

I think there largest user base is in "Emerging Markets". It is huge in Brazil and sort of a status symbol as only smart phones have it.

Valuation and revaluation carried out by GFY user Cam_girls using his "how much money do Live Jasmin make?" logic and basis of calculation.

thats a lot money.

this called real biz and serious cash...

Well this give me idea-i could create a site where i would pay 1$ each user for registration,so once i get 500 million users,i'l pay that 500 mil but i'l earn 16 bil so that's still profit.

sometimes being denied is a good way to start something new

https://scontent-b-vie.xx.fbcdn.net/...03902618_n.png

19 billion dollars later he's probably quite happy about that

android skype sucks ass. whats app is very popular down here and in many countries other than USA. Hopefully it will gain more popularity and they add video and audio realtime capabilities.

Can't believe there are so many people who aren't familiar with WhatsAP. I think it's not very popular in the states, as almost none of my American friends have heard of it.

Without a doubt.
This is all a ponzi scam and sooner or later this will come crashing to an end.

I never ever had been asked about whatsapp, everybody asks about skype. Take this forum as well - did anyone post their whatsapp number instead of skype etc?
I am no sure where are you pulling that big popularity of whatsapp in comparison to skype.

:1orglaugh:1orglaugh

nicely done

I, like apparently others here, had never heard of it until this news...and now will probably have to download it...

good on them to stick with their dream and then turn it into billions.

So I will leave whatsapp... Dont want to have that all my datas are in the net...like facebook

If you never heard about it it means you have no need for it (otherwise at least one of your friends would have suggested to connect there).

The NSA loves this deal :2 cents:

WhatsApp gone down for hours days after Facebook purchase

http://www.express.co.uk/news/scienc...ebook-purchase

Your WA number is your phone number.

WA is huge over here in Holland, I use it myself a lot too.

Never heard of it in US either. Even ghetto fone services have unlimited text. They should have got paid in bitcoins :)

From their wikipedia page :
This is about the United States being able to "Social Media Manipulate" the Ukranian unrest to their own best interests.

The first clue something stinks is paying 16(19) billion for a cell phone application that can be easily replaced with an unlimited text message plan.

The second clue just happens that this one was designed by a Ukrainian and it is popular in nations where Facebook never got a firm hold in.

The third is there is certainly other applications that can do similar that would have been a lot cheaper.

Its probably the only app that I've heard of, never used it though