Why did facebook buy whatsapp? - Business & Economy - Entrepreneurship - TIK Share

Why did facebook buy whatsapp?


Babulal Shiradana

2014-02-21

Why did facebook buy whatsapp?

Everyone would be wondering what did just happen, when a company is doing so well what was the need to sell of its own company?

Can money buy ones dreams?

First Flipkart played the games with its customers and now Whatsapp owners.

Here’s a quick look on what are the reason behind this great deal in market.

Facebook dint not buy whatsapp, it actually brought address book of 112 Million users for $19 Billion which is a very cheap deal for Facebook owners as this would bring back the facebook visits and they could scrutinize more on the data coming from whatsapp address book for advertising market.

WhatsApp notoriously rifles through your address book, scoops up your phone numbers, and uploads them to its servers. This is something Facebook has wanted for some time since its own phone records are incomplete.

Although half of its daily users are mobile, many don't share their full contact network with Facebook, and of the desktop-only Facebook users, many don't share their telephone numbers.

But why did Mr. Jan ( whatsapp founder) sell his dream ?

When asked about his views on this deal, he replied “ We have a company to Run, back to work” .

Is greed overtaking the ambitious dream of these founders.

The only reason I liked whatsapp is their customer satisfactory UI and service and “NO ADs” agreement.  The very first day when I read this article “Why we don’t  sell ads” was impressed by the attention being paid to customer service, but lost the same when the same company sold itself to the world’s leading online ad-agency.

 

Hope our young entrepreneur don’t do the same mistake.

CA Pulkit Sharma

2014-02-21

Whatsapp grew faster than facebook. Most of the people are on mobile, and whatsapp rules the mobile social network.

Facebook with whatsapp will increase the subscribers.

I think facebook is going to integrate, whatsapp functions with facebook chat.

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Mathew Jacob

2014-02-23

My guess why Whatsapp sold their business

Facebook was facing tough completion from whatsapp, the avg number of  people joining Whatsapp is 1 million a day. The number of people using facebook was reducing as people can stay connected without login into facebook. Read this some were " WhatsApp has become an app that people use because they need. Facebook has become an app people (still) use out of habit." Solution to this problem 'buy the competition'.

But how to buy a successful business, that has just begun to show its true colours? Offer it such a great deal that it cannot  say no. So facebook just did that.

Now all said and done Mr. Jan ( whatsapp founder) did not start his business for charity his intension was to earn a living through his skills. Now if such a mouth watering offer come his way, how can he just reject it.

After the deal, Facebook  is said

  • WhatsApp will remain autonomous and operate independently
  • service for a nominal fee
  • no ads interrupting your communication   

So Mr. Jan may have been still thinking of his customers during the deal. But time will only tell if the above promises kept or just forgotten like a old newspaper. 

 

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Rahul Rai

2014-02-23

@Mathew Jacob

Nicely summarised the transaction. Whatsapp is really helpful for users. They need not to send the documents or samples to customers, just take a pic and send.

Facebook is made for young generation for time killing, whatapp is for everyone without disturbing ads.

Now the things to watch will be:

  1. Whether facebook will insert ads in whatapp?
  2. Whatsapp will be just an extension of facebook?
  3. Whatapp will use facebook login id?

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