WhatsApp was the Bomb That Shook Silicon Valley this week. When Facebook paid $1bn for Instagram, people thought Mark Zuckerberg was off his rocker in spring 2012. The WhatsApp deal is no different, other than for its order of magnitude. Facebook has agreed to pay $19bn for the instant messaging platform, partly for access to its users, but mostly to ensure it doesn’t get hobbled by this very threatening competitor. Its Facebook’s quest for communication domination, too. You May Not Use WhatsApp, But the Rest of the World Sure Does. It is also reported that Google Was Willing to Beat Facebook’s $19B Offer for WhatsApp. That’s a good price ($16 billion in stock and cash, along with as much as $3 billion in restricted stock units for the founders) for a company that was founded in 2009 because neither of those big companies wanted to hire the company founder at the time (What an epic comeback).
Why WhatsApp is worth $19 billion? WhatsApp‘s usage statistics are astounding: It claims 450 million active users , 72% of whom use the service on a daily basis. WhatsApp has a strong presence internationally, particularly in Europe, India and Latin America. The number of messages that flow through its system is thought to be roughly equal to the total volume of SMS messages. It’s easy to see why both Facebook and Google would want WhatsApp. As the one of the largest SMS alternatives in the world, it’s a communications platform that could be useful to either company, and a liability in the hands of the other.
WhatsApp is also growing at a blinding speed, adding 1 million new users per day. At that rate, WhatsApp should hit 1 billion users sometime next year.With its $1 annual subscription fee, 1 billion users could translate into significant revenue for Facebook. At the current price and usage, Facebook paid about $45 per WhatsApp user. Maybe Mark Zuckerberg took a step closer to realizing a dream to bring the Internet to everyone on the planet with Facebook’s $19 billion acquisition of mobile messaging service WhatsApp on Wednesday. Next week, Koum will join Zuckerberg on stage at the annual Mobile World Congress trade show in Barcelona, Spain, to discuss, among other things, how the two will unite to push the Internet.org project forward.
This $19bn is an a huge amount of money, so it might be a good idea to show how much money this really is. There are many examples posted to Internet, and they could be eye-opening. The $19 Billion Facebook Spent on WhatsApp Could Have Bought 76 Washington Posts article has a good set of comparison to prices of several big companies. Things that are cheaper than whatsapp page has a growing set of examples what are cheaper. For less money than $19 million dollars you could for example get a huge flight company, bought 20 major football clubs,build a huge aircraft carrier, buy the whole world music business, could have arranged London Olympics or buy a small country. You could also get Clear water for everybody in entire earth with less money.