Technology

A Deal that Shocks: Facebook Pays $19 Billion for WhatsApp

By now, everyone knows that Facebook paid no less than $19 billion for the service WhatsApp. However, this deal managed to shock many analysts. 

Having under consideration that the market value of Xerox is estimated at less than $13 billion, while Sony is believed to be worth $18 billion, WhatsApp was purchased with $19 billion. 

If this has been a great deal for Facebook or a decision that the company might soon regret is something yet to discover. It surely is interesting that WhatsApp, a company released about 5 years ago, is now worth that huge amount of money. 

Some believe that Facebook has certain plans with this service that will make the investment worth. However, until now it remains unclear exactly what Facebook plans on doing.

Facebook claimed in a recent statement that they are purchasing WhatsApp in a deal that will make the social network pay about $42 for each of the 450 million active users that the service has. 

Well, apparently Facebook sees a lot of potential in WhatsApp. Some reports revealed that the software’s all-inclusive nature actually was one of the main reasons why Facebook was convinced to make this spectacular purchase. 

The app has immediately raised the value of Facebook, the deal being announced on Wednesday. However, the purchase is expected to be finalized only later this year. Until now, Facebook has claimed that they will maintain the same policy on WhatsApp as the one used on Instagram. 

This means that they will allow the service to evolve and operate separately from Facebook. WhatsApp founders have already claimed that the purchase will not mean that the service will insert ads from now on. 

Although analysts say that the growth potential of WhatsApp remains unknown, maybe Facebook hurried in making this acquisition. Still, there must be something that makes this service so interesting, as Google also wanted to purchase WhatsApp. 

Reports indicate that Google was willing to pay even more on this service, but its co-founders refused. The reason to that was, according to Jan Koum and Brian Acton, that Google was only interested in the service to keep it away from Facebook.

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John Colston is currently the leader and coordinator of our team of writers. He lives in Colorado and is collaborating with Ironclad Integrity Unlimited Ltd since 2006.John is a passionate independent journalist with a lot of experience in team building and human resources management.If you have any questions, suggestions or editorial complaints about DailyGossip.org, contact John at John.Colston@dailygossip.org

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