Light Reading
The social network will get WhatsApp's 450 million deep customer base to the tune of $19 billion in cash and stock.

Facebook to Acquire WhatsApp for $16B

Sarah Reedy
2/19/2014
50%
50%

In what will be its biggest acquisition ever, Facebook announced Wednesday that it's spending more than $16 billion to acquire the over-the-top messaging provider WhatsApp.

Facebook said in an SEC filing that it's splashing down $16 billion in cash and stock, as well as $3 billion in restricted stock for employees of the communications provider, which offers an app for free texting, group chats, and content sharing.

We've said in the past that WhatsApp would be a dream partner for a wireless operator looking to make a serious OTT play, but now it's another opportunity lost to a social network. (See Operators Can't Kik the OTT Habit.)

And it's a big opportunity, at that -- WhatsApp has more than 450 million monthly active users, 70% of which use the app more than once a day. Users send half a billion photos, 200 million voice messages, and 100 million videos over its network-riding service every single day.

WhatsApp, once a staunch Facebook competitor and rumored acquisition target for Google (Nasdaq: GOOG), might butt heads with its new owner on how to treat mobile ads. Facebook says WhatsApp will continue to operate independently, but whether it will remain ad free is another question. (See WhatsApps' $1B Message and Mobile Ads Rack Up Cash, Social Status.)

— Sarah Reedy, Senior Editor, Light Reading

(24)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 3   >   >>
Susan Fourtané
50%
50%
Susan Fourtané,
User Rank: Blogger
3/2/2014 | 4:05:21 AM
Re: Re : Facebook to Acquire WhatsApp for $16B
SachinEE, 

I am surprised that there are still people using Yahoo Messanger. I would have dared to say it was already dead. 

-Susan 
Susan Fourtané
50%
50%
Susan Fourtané,
User Rank: Blogger
3/2/2014 | 3:57:02 AM
Re: Nothing changes?
wanlord, 

You forgot to list Google+ to your signature / multiple methods for contacting you. I am assuming you are also on G+, aren't you? 

-Susan
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
2/24/2014 | 1:27:33 PM
Re : Facebook to Acquire WhatsApp for $16B
@Susan: Mobile messaging is commonly grouped as "pre-whatsapp age' and "post-whatsapp age", and with moving technology and finding new ways to modulate communicating options, users find it way easier connecting and communicating via whatsapp than yahoo. I think what they need is a major shaping up, from the marketing point of view, as well as application point of view. Lets face it, the yahoo Messenger is plain boring.
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
2/24/2014 | 1:26:04 PM
Re : Facebook to Acquire WhatsApp for $16B
Well, why not? Whatsapp is the most famous messaging service right now, and can be installed in every phone possible, except a handful of devices running ancient software. I don't think Facebook is doing any wrong acquiring Whatsapp, because Facebook understands business and more so when a lot of users are available. To be fair Whatsapp has more "active" users than Facebook itself.  However with more app developers coming out and making nice communicating apps (e.g. Snapit) with increased security, I think Whatsapp just might lose the edge in the long run. Let's face it, Whatsapp has security issues. No?
wanlord
100%
0%
wanlord,
User Rank: Light Sabre
2/21/2014 | 11:22:46 AM
Re: Nothing changes?
I still don't get it. With unlimited text plans, imessage between iphones not counting as text, why do people go out of their way to download and pay for a client? What kind of IP or technology or market advantage does WhatsApp have that nobody else can provide to users that are so fickle they will use another app in a heartbeat?

It's getting crazy.  My new OOO signature:

---------------------------------------

I am out of the office this week.

You Can Contact me by one or multiple methods. Response may be delayed as I randomly check each app.

Facebook
LinkedIn mail
Twitter
iMessage or SMS
Facetime
Instagram
Google Chat
Gmail
Work Email
WhatsApp
Lightreading message

And of course if you are really desperate and remember my Voice Number (I don't) then you can call me assuming my battery is not drained from running all those apps in the background.

 

Thanks.
R Clark
50%
50%
R Clark,
User Rank: Blogger
2/21/2014 | 3:01:37 AM
Re: Nothing changes?
The WhatsApp interface is really clean, but in a lot of Asian markets people see it as boring compared to the busy WeChat or Line interfaces. They make money out of games and stickers. I can't see Facebook doing that with WhatsApp but will surely integrate it into its platform and - somehow - leverage it for its ad business.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
2/20/2014 | 7:09:14 PM
Re: Nothing changes?
This is my fault. I got a WhatsApp account about two weeks ago.

Sarah - "WhatsApp has a blog post out now promising that nothing will change post-Facebook acquisition. I'm not really buying it. Facebook Messenger is to subpar to keep it around much longer. I can't imagine FB won't try to integrate WhatsApp more fully."

Facebook has pretty much left Instagram alone, hasn't it?
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
2/20/2014 | 7:06:23 PM
Re: WhatsApp

BBM is likely to be a plum when Blackberry is inevitably sold for parts this year.

SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/20/2014 | 12:30:40 PM
Re: Nothing changes?
Well, I think you see that happen a lot. But, I tend to agree with Keyrouz...Facebook would be dumb to ruin what has made WhatsApp so popular -- it's simplicity and lack of ads. It would lose the user base it paid so dearly for (about $42 per person...yikes!).
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/20/2014 | 12:28:44 PM
Re: Kids
That's a good point. Most people I know who use it, that aren't kids, do so for cheaper international communication. 
Page 1 / 3   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
LRTV Huawei Video Resource Center
Amsterdam ArenA as an Agile Campus

11|24|14   |   3:31   |   (0) comments


The Amsterdam ArenA, home of the Ajax soccer team, can be a crowded space. ArenA has partnered with Huawei to work on bringing ample bandwidth to 53,000 people at the same time.
LRTV Huawei Video Resource Center
Building a Gigabit Wireless Network

11|24|14   |   3:15   |   (0) comments


3W is dedicated to customer-centric services such as catering, incubator and PR. To do this requires a solid IT structure. In this video, 3W discusses how Huawei has helped to achieve its goals.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
$35B+ Spectrum Auction Dings Verizon, Shines Dish
Dan Jones, Mobile Editor, 11/24/2014
Like Us on Facebook
Twitter Feed