Light Reading

Facebook to Acquire WhatsApp for $16B

Sarah Thomas
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        ADD A COMMENT
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
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (0) comments


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Qualcomm Wants FCC to Stay Out of LTE-U Fray
Sarah Thomas, Editorial Operations Director, 7/27/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Distract-a-Cat Click Here
The vibrate function makes for a useful cat distraction.