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Facebook acquires WhatsApp


On 19th Feb 2014, Facebook acquired Whatsapp, mobile messaging service for whopping $16 Billion in cash and addition $3 Billions for employees to retain with Facebook. By all measures this becomes incredible team for both Facebook and WhatsApp. Here are what Facebook will get by acquiring $19 billion startup and what made WhatsApp such a huge asset for Facebook, Google, etc.

Facebook WhatsApp

What Facebook gets:

  1. Facebook is all about connecting people and with WhatsApp it will stay as numero-uno company for social networking
  2. WhatsApp has all it’s user base on mobile and mobile is next internet of 2000′s
  3.  WhatsApp has 0.5 billion monthly users within span of 5 years and expanding it exponentially every day. It means larger user base
  4. Facebook messenger is only bit popular in USA and Canada but having seldom reach in Europe and emerging markets like India
  5. This gives Facebook opportunity to expand and strengthen it’s user base around the world
  6. Once it becomes winner take all scenario, Facebook can monetize as like it did with itself

WhatsApp strategy for success:

  1. Simple, easy to use for anyone
  2. Clean interface with no glitch
  3. No ads, whatsoever
  4. Smooth and user friendly apps
  5. All helped to build user base and they boosted the growth on increased user base
  6. Uses lite bandwidth for any data plan so became popular in countries like India with limited data plans
  7. Growth is prime compared to revenue
  8. Revenue comes from yearly nominal charge of $1 for some countries
  9. Another revenue source is tie up with telecom companies for inbuilt app like Facebook
  10. Ultimately cool product is key and focus on customer than revenue. Revenue comes up automatically with customers.
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