Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Wat Blog - Connecting Web - Advertising - Technolog (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Does Acquiring Whatsapp Make Sense For Facebook?

% of readers think this story is Fact. Add your two cents.


We have been hearing rumors of a possible acquisition of Whatsapp by Facebook. Apparently, both the companies are in talks over a deal, as reported by Techcrunch. To give you some background, Whatsapp is an uber popular mobile messaging app that has gained massive usage because of its simplicity,  cross-platform compatibility and a brilliant pricing model. Facebook on the other hand is a billion user strong and faces significant challenges in mobile monetization.

Well, both of these services are popular and are widely used. Facebook is free and depends on advertising related revenue, although it has recently shown interest in e-commerce via its Gifts service which debuted in the US sometime back. Whatsapp on the other hand is free for a year and then charges $0.99 every year. Whatsapp’s recent numbers have not been released and the only data we could find is that they crossed the 1 billion messages per day mark last year. The company is notoriously secretive about its numbers and has a well documented stand against advertising in products. Whatsapp founders had assured that the service will be a 100% advertising free one, in an official blogpost. Whatsapp also has very less downtime except for a few outages here and there. That is understandable given the massive loads it carries. These days, many other companies have jumped into the chat/messaging app fray. Some of these are Line, WeChat and Samsung’s ChatOn. ChatOn however looks like Samsung’s Google Plus while Line and WeChat are expanding in Asia.

Whatsapp is huge in India! Everyone who I have come across with a smartphone uses Whatsapp as a replacement for SMS and group chats. The service has given considerable pain to Indian mobile network operators as it eats into a steady revenue source from SMS. So much so that carriers like Reliance Communications have actually tied-up with Whatsapp to release cheap chat packages for students. The reason behind Whatsapp’s ubiquity in the country is probably due to its ease of use and the automated contact pulling based on saved phone numbers in phone contact books. You can also send media using the service. Another prominent reason is also the cross compatibility between different OSs that are used in India eg. iOS, Symbian, Windows Phone, Android and Blackberry. This makes it the only true messaging app in the country that effectively makes communication highly affordable.

Does acquiring Whatsapp make sense for Facebook?

Facebook could easily acquire Whatsapp but I fail to see a common path through which both the services could work with respect to their business models and vision. Even if Facebook acquires Whatsapp, it will only get Whatsapp’s users and the resulting data. The data could be parsed through Facebook’s systems and a user’s wants and desires could be analysed. After that blogpost, I don’t see Whatsapp ever showing ads since it will be like the founders went back on their word and that doesn’t sound like a good thing. Whatsapp is a paid app and should be generating enough revenue to get along. They could build more pro features and charge more. Facebook has its own messaging service which is laggy. Instead of acquiring Whatsapp they could look into building a better and faster one for themselves since they have already invested in making a cross platform app. So overall, the ‘rumored’ acquisition doesn’t make sense to me at all because, Facebook has it all and going after another messaging service (not ad supported) just because of its user base and traction does not seem to be a very compelling decision. It somehow depends on the road Facebook is taking in the future. Does Facebook want independent services like Instagram and Whatsapp to add to its portfolio of products or does it want to make Facebook (the service) stronger via these acquisitions? Either path is possible but I highly doubt whether the first one is worth all the effort and cash.

What are your thoughts on this? I would be very interested in hearing them. Share them with me in the comments.

Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency


WATBlog is India’s Best Blog Of 2009 and is owned and managed by WATMedia Pvt Ltd a Digital Media Company that aims at being the thought leader in the space by Connecting the Web, Advertising and Technology (WAT) Industry in India.


Source:


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.