The world's largest social media, Facebook Thursday bought the mobile app WhatsApp for $ 16 billion. An app that is free for users to download and doesn’t earn money on advertising. A good deal?
It is long time ago that Facebook was merely a social media for students at Harvard University. Very long ago.
With over one billion users worldwide, you might think that the social empire could hardly grow bigger. But empires usually has a tendacy to want to expand, and the company behind the world's unconditional largest social media made it clear that they are not done strengthen its market position with Thursday's acquisition of the private message app WhatsApp.
Facebook founder Mark Zuckerberg has ousted four billion in cash and $12 billion in shares on the table for a purchase of WhatsApp.
But why spend 16 billion, an amount that would be able to finance an entire countrys public debt, on an app that does not stand out from so many others?
WhatsApp says that they have 450 million monthly users . And according to U.S. Business Insider WhatsApps user base grows faster than Facebook did when Facebook had the same age as WhatsApp now. According to the media its first and foremost that 70 percent of WhatsApp users return daily that has sparked the interest of Mark Zuckerberg. It is even more than Facebook, which otherwise has some of the most loyal users.
Facebook can grab Internet users who visit the main site as often as they used gjorde. Facebook have lost its novelty.
Facebook last spring bought the social media Instagram for a billion dollars, and it may be the success of this acquisition which has given the people behind Facebook the lust for a new investment adventure.
The big challenge for Facebook will be to find a way to make money on WhatsApp. Even the though Facebook have a increasing revenue from an increasing number of advertisements, they need to find out if they will introduce the ads for WhatsApp. For it is a balance on a tightrope . Advertising can at worst scare users away.
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