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
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed