WhatsApp merged with Facebook just earlier this year and this merge went under 4 19 billion that also in unclear circumstances.
As per reports Facebook was to pay $ 16 billion including cash and shares. Another $ 12 billion were to be paid in shares and $ 4 billion were to be paid in cash. The remaining $3 billion has been reserved for restricted stocks units that are to be granted to the founders and employers of WhatsApp that will spread evenly in the four years duration of closing.
According to Mark Zuckerberg, WhatsApp is going to be a valuable application as its on way to connect 1 billion people. HE even expressed his excitement on partnering with Jan, who has been known for quite a while and his entire team who helped connect the world and made it more open.
Why did Facebook buy WhatsApp
According to Facebook the reason behind this purchase is the great mission of bringing both utility and connectivity in front of the world and delivering efficient and affordable internet service and this merger was aimed to help increase the user’s engagement and development across both the firms.
Today WhatsApp is being used by more than 450 million people across the globe, and 70% of them are active on a daily basis. In addition to this, more than one million people are being added to the network on a daily basis. And, both the company’s share the perspective-connecting people.
Another interesting fact that emerged is facebook was under threat as recent reports showed young users were turning towards WhatsApp and they felt Facebook as un-cool because their parents and older people were joining the app. The messaging app has always provided privacy for their younger generation and safe communication among friends. On the other hand Facebook has always valued the huge audience and feared being replaced by this growing trend so decided in purchasing this major player, in this case its WhatsApp, ensuring competitors like Google and Yahoo are still at bay.
WhatsApp is on full swing to gain its one billion users, which is a huge number by any means. Now clearly, Facebook is not going to stand around, as they say get it while the going is good.
According to Zuckerberg, Facebook has provided an environment where the young entrepreneurs can think independently and in future build their own companies by setting and focusing their direction and growth along with enjoying the benefits of expertise, resources and sales from Facebook. This approach seems to be working just fine with Instagram, so what’s wrong if WhatsApp follows along.
He also said the headquarters will remain in Mountain View, California and the WhatsApp CEO will also be joining the board of directors at Facebook.
What’s this mean for both Facebook and WhatsApp users
As a user, be it on WhatsApp or Facebook, it’s going to be the same as you are still operating on different messaging apps.
Generally, it would seem sensible in monetizing the given massive international and mainly the younger audience as a part of advertising, but according to Zuckerberg, they won’t do so because they don’t have intensions of making money from its messaging system.
Nevertheless, Facebook is on full throttle to invest a lot of money on WhatsApp and has plans of introducing new features like voice calling feature and even a PC version in the near future. Its clear WhatsApp has a bright future ahead o fit and if things go well planned might just turn out to be the best messaging app available for free messages on both PC and Smartphone’s.