Facebook to buy WhatsApp for $19bn

 

 

 

 

 

 

 

Facebook has bought messaging app WhatsApp in a deal worth a total of $19bn (£11.4bn) in cash and shares. The deal announced on Wednesday bolsters the world’s biggest social network – which has more than 1.2 billion members – with WhatsApp which has 450 million active users.

The acquisition supports Facebook and WhatsApp’s shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably. Announcing the deal, Facebook founder Mark Zuckerberg described WhatsApp’s services as “incredibly valuable”. WhatsApp allows users to send messages over internet connections, avoiding text messaging fees. The company claims it is currently registering one million new users a day. It makes money by charging users a subscription fee of $1 per year, although it offers a free model as well.

Zuckerberg said WhatsApp would operate in the same way as Instagram, as a separate firm. ‘It would be pretty stupid of us to interfere,’ he said. He also said he was not planning to put ads on the service. ‘Our strategy is to grow and connect people. ‘Once we get to 2-3 billion people there are ways we can monetise. ‘Now we want to focus on growing users. I don’t think ads are the right way here.’

 

WhatsApp Messenger is a proprietary, cross-platform instant messaging subcription service for smartphones. In addition to text messaging, users can send each other images, video, and audio media messages as well as their location using integrated mapping features. WhatsApp Inc. was founded in 2009 by Americans Brain Acton and Jan Koum (also the CEO), both former employees of Yahoo!, and is based in Moutain View, California.