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 Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
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
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
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Roku Raises $25M, But for What?
Mari Silbey, Independent Technology Editor, 10/23/2014
AT&T: Merger Review Halt Won't Hurt Us
Alan Breznick, Cable/Video Practice Leader, 10/23/2014
Like Us on Facebook
Twitter Feed