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Facebook to buy WhatsApp for $19bn


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#1 Casey_boy

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Posted 20 February 2014 - 12:26 PM

The social networking site Facebook has announced that it will buy the mobile messaging company WhatsApp in a deal worth $19 billion (USD). The $19bn will be mainly in the form of stocks ($15bn) with a cash sum of $4 billion.

 

WhatsApp is a popular messaging service, running on iOS, Android and Windows Phone, which allows users to message each other for free (the service is free for a year but then runs a subscription based system for $0.99 USD per year). It has a user base of some 450 million people who use the service every month, with 1 million new users joining the service every day, and has been seen as a major competitor to the conventional SMS messaging system.

 

Mark Zuckerberg, the founder and CEO of Facebook, said in the press statement that "WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable".

 

As with its recent purchase of Instagram, Facebook have confirmed that WhatsApp will remain semi-independent and will be free to "set its own direction". The co-founder and CEO of WhatsApp, Jan Koum, is set to join Facebook's board of directors.

 

http://abcnews.go.com/Technology/wireStory/facebook-buying-messaging-app-whatsapp-16b-22589830

http://www.bbc.co.uk/news/business-26266689


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#2 bassfisher6522

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Posted 20 February 2014 - 01:01 PM

Makes me wonder what FB is really up to......



#3 Allen

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Posted 20 February 2014 - 01:15 PM

Good lord, it has begun.


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#4 battyhippie

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Posted 20 February 2014 - 01:48 PM

And I just try to stay out of it all.



#5 ranfan

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Posted 20 February 2014 - 02:29 PM

Didn't know FB was even worth that much to begin with



#6 Animal

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Posted 20 February 2014 - 02:50 PM

Shows Facebook's commitment to invading the mobile world more extensively.

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#7 ranfan

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Posted 20 February 2014 - 02:58 PM

they're succeeding where myspace failed lol...



#8 guddiekay

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Posted 20 February 2014 - 04:08 PM

If I were to tell whatsapp anytin, I'd say "be careful and be in charge". Cus facebook got so much in porch so anytin is possible.

Edited by guddiekay, 20 February 2014 - 04:10 PM.


#9 Manish Nasa

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Posted 20 February 2014 - 04:49 PM

:clapping:  :hysterical: 1 million new users joining the service every day :clapping:  :hysterical:

 

  Poor Snowden!!!



#10 surajsonar

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Posted 21 February 2014 - 03:36 AM

see what changes can make mark zuckerberg in whats app  :bananas:



#11 Ted Striker

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Posted 22 February 2014 - 02:51 PM

I read an article on another Website about this deal that said Facebook paid less for WhatsApp than they did for Instagram if you calculate the cost for each user who's registered to the service.  However, $19 Billion still seems outrageous especially when you compare that amount to what certain companies are worth.  BlackBerry's market cap is currently $5.35 Billion and they generate over $1 Billion each quarter in revenue. 



#12 kosmonaft

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Posted 10 March 2014 - 05:26 AM

When you are loosing millions on monthly basis you can do that.


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