What Facebook gains from this historical acquisition? Read more!

1. A $19b acquisition! whatsapp with
facebook?
What Facebook gains from this historical acquisition? Read more!
So the biggest acquisition in the history of business has been
announced and nearly 19 billion is to be paid to whatsapp from
facebook. Facebook, that has ruled the social space in the last decade
has been finding it difficult to compete against the mobile messenger
app. There is a lot of emphasis on retention of the user and whatsapp
was winning the competition. The shift of internet towards mobile
devices caught facebook in a ‘not very much prepared’ manner and
quickly there was rise of an app driven ecosystem that was exclusive
and interesting to the users. Is right of facebook to acquire one of the
most successful app development company? What are the future
implications for facebook?
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2. There are reports that the application keeps on adding 1 million
users daily and this is something substantial enough for an app
development company to be acquired for billions. Facebook fought
against whatsapp to gain advantage on mobile but failed. It just did
not happen. Facebook was made for web that brought each and every
tool together to add value to the social conversations. On the other
hand whatsapp initiated altogether a new wave of social interaction.
Facebook needed to compete against it and tried their best with the
messenger app and later with an android launcher, both of them did
not really take of. The only way they could have had their hands upon
the most engaging interaction is by acquiring whatsapp. According to
one of the reports messaging applications such as whatsapp, line and
we chat are emerging as total ecosystems. As smartphones become
the new tool to access internet and communicate, they are emerging
as the biggest source of revenues too. Hence the acquisition is
obvious from the point of view of revenues.
Facebook too, can learn more and delve deeper into optimizing their
business around the mobile.With a team strength of 50, whatsapp is
one of the most efficient app development company today and can be
very helpful. Facebook’s attempts to rule the mobile has been
criticized in the past and the acquisition may bring better
understanding of the mobile ecosystem into the company. Facebook
might go on monetizing the users through an ad based model which
might or might not affect the whatsapp user base. However, one
thing is certain, facebook has acquired its major competitor that
could have been a great threat to the facebook ecosystem an another
couple of years. While bulky deal raises a lot of eyebrows and
naysayers, it is going to help FB in the coming times significantly.
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