Is Whatsapp sold to Facebook

In a play to control messaging on phones and also the Web, Facebook has acquired WhatsApp for $19 billion. Is Whatsapp Sold To Facebook: That's a sensational sum for the five-year old business. However WhatsApp has been able to hold its weight versus messaging heavyweights like Twitter (TWTR), Google (GOOG) as well as Microsoft's (MSFT) Skype. WhatsApp has upwards of 450 million customers, and it is including an additional million users every day.

Is Whatsapp Sold To Facebook<br/>

Is Whatsapp Sold To Facebook

Referring to WhatsApp's soaring growth, Facebook Chief Executive Officer Mark Zuckerberg stated on a teleconference, "No person in the background of the globe has done anything like that."

WhatsApp is the most popular messaging application for mobile phones, according to OnDevice Research study.

Buying WhatsApp will just reinforce Facebook's already solid setting in the jampacked messaging globe. Messenger, Facebook's a standalone messaging app for mobile devices, is 2nd just to WhatsApp in its share of the smartphone market.

Comparable to traditional text messaging, WhatsApp allows people to connect through their mobile phone numbers. However as opposed to racking up texting costs, WhatsApp sends the actual messages over mobile broadband. That makes WhatsApp particularly affordable for interacting with individuals overseas.

That type of mobile messaging services have actually come to be wildly preferred, with two times as several messages sent out over the mobile Web than by means of standard texts, according to Deloitte. But the majority of the messaging market's income is still driven by message messaging.

On the teleconference, Facebook stated it is not aiming to drive profits from WhatsApp in the close to term, instead concentrating on growth. Zuckerberg claimed he does not anticipate trying to aggressively expand WhatsApp's revenue till the solution gets to "billions" of individuals.

WhatsApp currently charges a dollar a year after offering customers their first year of use absolutely free. WhatsApp Chief Executive Officer Jan Koum said on the teleconference that WhatsApp's service model is already effective.

That indicates Facebook purchased WhatsApp to add worth to its existing messaging services, as well as for the long-term capacity of the firm.

Facebook bought Instagram for $1 billion in 2012 for comparable reasons: As young social network users was attracted in the direction of photo-sharing, Facebook wanted to scoop up what could have eventually become a large competitor.

Like Instagram, WhatsApp will certainly function as a self-governing system within Facebook, with all the existing workers can be found in as part of the offer.

Facebook (FB) said it will certainly pay WhatsApp $4 billion in cash money and $12 billion in supply. WhatsApp's owners and personnel will certainly be eligible for for another $3 billion in supply grants to be paid out if they continue to be used by Facebook for four years. Koum will likewise sign up with Facebook's board of supervisors.