Whatsapp has been riding a wave of popularity. The application was born without much celebration in 2009 by founders Brian Acton and Jan Koum. Though it grew in popularity very quickly to become the most used messaging application in the entire world. Whatsapp initially found its audience with users across the globe, before it was popular in the United States. But it has recently found widespread use with the American audience as well. In fact, Whatsapp has grown so popular that Facebook recently acquired it for $19 billion dollars. That is one of the biggest Silicon Valley acquisitions of all time. It’s clear that investors really believe in the power of Whatsapp.
One of the the questions that has been on people’s minds is how will Whatsapp change after his acquisition. Before finding a conclusive answer, it’s important to note how Facebook has handled its previous acquisitions. Instagram, another billion-dollar Facebook purchase, has retained much of what has made it so popular. In fact, you would never know that Facebook actually owns Instagram. This is for marketing purposes to a certain extent. Similar to Instagram, Whatsapp is very popular among the teen audience. This is a trendy draw that Facebook simply does not have by itself. Many teens view Facebook as a resource for connecting with adults, not for keeping tabs on their friends.
If Facebook is to keep the trendiness of Whatsapp, there is little chance that the application will see a major software or branding overhaul. The founders still have their same jobs, and much of the personnel has been left unchanged. Facebook wants to the app to remain cool and edgy, a source for young people to communicate. They have shown no interest in turning the application into an extension of Facebook. They would rather let strength of the brand carry itself.
With over 600 million users, this talking application has established itself as the largest in the world. As the market in the United States continues to grow, there is no telling how profitable a venture this could be. Making money is not the primary concern as of now; Whatsapp is more focused on building its brand in America. While Americans have taken to using the app more, it still faces still competition from other messaging applications. It is important for Facebook not to take a $19 billion dollar misstep with the application, they could establish themselves as the dominate social media leader for this next generation.