WhatsApp? Facebook’s Future

1.2 billion people and billions in ad profit already- how can you go beyond that? Stock-owners demanded growth. Facebook answered with their $19 billion purchase of the company WhatsApp to address an issue that will re-emerge later.

Here’s the $19 billion problem:  Facebook needs to stay relevant.  What better way to stay on the charts than to acquire a company popular in other markets (WhatsApp) that also stands a chance to add more people and help Facebook innovate?

Honestly, the only reason I know WhatsApp exists is because Facebook- a big name here- bought something that’s popular everywhere else.  But now that it’s here, let’s take a look…

It’s 450 million people strong with a faster growth rate than Facebook or Twitter.  It’s free the first year, costs a dollar after (likely to change after this purchase), and helps people avoid the painful fees of texting.  They can connect with nearly any mobile device and announced that it will challenge Skype in online calling.  Pretty nifty.

Considering Facebook’s attempts of mobile integration and its need to expand, it’s no surprise it gobbled up WhatsApp. This app has room to grow.  Facebook has 1.2 billion people.  That’s almost a fifth of the world population. How can you keep that many people aboard a ship being attacked by older people reducing the cool factor?  You get new people, new features, take away competition, and get ahead in the game of technology.

This $19 billion problem is greater than the GDP of over a dozen countries and can probably buy you a few islands to start your own nation. From there you can wage war against this injustice: WhatsApp cost 100,000 times more than your parents’ lifetime income before taxes, is 19 times costlier than Instagram’s acquisition ($1 billion), and could finance your presidential campaign to protest this madness.

 

 

 

 

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