backtop


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



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

By lagomorpha on 2/20/2014 1:58:14 PM , Rating: 2
quote:
Facebook is mostly an American phenomenon. It has little traction outside of the US except for a few countries.


Which is probably the motivation for the purchase. Within the next couple months if you're a WhatsApp user but not a Facebook user expect a message like the following:

quote:
Congratulations *user* WhatsApp is dropping the $1/year fee, to continue WhatsApp service simply log on to your Facebook account. Don't have a Facebook account? Create one now!


It's going to be worse than when Google started forcing gmail/youtube accounts to merge or when Microsoft tried to start changing Skype accounts into Microsoft accounts.


By alpha754293 on 2/21/2014 9:48:12 AM , Rating: 2
That's an interesting point about the consolidation of services as the tech companies start merging. So they're on THAT phase of the cycle now, until at some point in the future, they're going to get a little too big for people to be comfortable with (or the management becomes lax as they're just WATCHING profits happen, almost as though magically and spontaneously). And then they will start withering and falling and dying, then they get broken back up in bankruptcy court, and then whole cycle starts all over again.

Yeah...it was pretty annoying when Google forced Youtube into Google accounts.


"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki