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Print 29 comment(s) - last by Disorganise.. on Feb 23 at 8:19 PM

Google's offer lacked the board seat Facebook gave up

Yesterday we mentioned that Facebook had plunked down a huge amount of cash to buy the WhatsApp messenger service. The purchase cost Facebook a whopping $16 billion in cash and stock.
 
A new report from Fortune claims that Facebook wasn’t the only major tech firm sniffing around WhatsApp. Google also reportedly made an offer to buy the company for $10 billion.
 
Google's offer was not only significantly less than the one made by Facebook, but the Google offer also reportedly didn’t come with a seat on the board as Facebook's did.
 
Many of our readers have commented that they are flabbergasted as to why such a simple app would be worth so much money to Facebook and the reasons are quite simple. The service has 450 million active users and is gaining one million new users each day. Many companies would kill for the information that can be skimmed from those users.
 
As Facebook CEO Mark Zuckerberg said in a conference call following the announcement, "WhatsApp is the only app we’ve ever seen with higher engagement than Facebook itself."

Source: CNN



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By heffeque on 2/20/2014 11:02:20 AM , Rating: 4
WhatsApp is the primary messaging system moslty in countries where sending SMS isn't "free".


By kmmatney on 2/20/2014 11:49:21 AM , Rating: 2
I'm assuming it uses data, though? I get my phone free from work, but the rest of my family (4 phones) are using Ting, so messaging is fairly cheap - for our usage about $5/mo for all 4 phones. I guess it depends on how much data WhatsApp uses to see if it is worth it - it must be using data even when not in use to check on things.


By althaz on 2/20/2014 5:00:30 PM , Rating: 2
Whats app messages at typical data prices work out to cost the end user about one cent per 12,500 messages.


By Jeremy87 on 2/20/2014 8:51:56 PM , Rating: 2
My plan is 3€/mo which includes a limited number of free SMS, but unlimited (albeit slow) internet. Why would I not use WhatsApp with my friends who also use it?


By Motoman on 2/20/2014 12:20:09 PM , Rating: 2
Yeah, and it's just like Kik and probably a bunch of other exactly-the-same apps.

None of which are worth $16B.


By Jeremy87 on 2/20/2014 8:52:54 PM , Rating: 2
The app isn't worth 16B. The huge userbase is.


By Motoman on 2/21/2014 12:35:52 PM , Rating: 2
Not after they jump ship and go to Kik or Skype or any other me-too app.


"I modded down, down, down, and the flames went higher." -- Sven Olsen

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