Home Apps WhatsApp acquired for deal worth $19 Billion by Facebook

WhatsApp acquired for deal worth $19 Billion by Facebook

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An App that almost all with a smart phone can’t live without has had great news yesterday (19th Feb) as Facebook plans to acquire WhatsApp for a deal worth $19 Billion. Yes, you read it right, $19 Billion! With an unprecedented 400 Million active users, it is a strategic acquisition by Facebook to further enhance its reach towards the teen and smartphone users.

WhatsApp growth (image cortesy theverge.com)

WhatsApp growth (image cortesy theverge.com)

The co-founders and story of never giving up

Jan Koum and Brian Acton co founded WhatsApp in 2009. Brian Acton was actually turned down by Facebook in August 2009 as visible from his tweet back then.

Facebook turns down Brian Acton in 2009

Facebook turns down Brian Acton in 2009

https://twitter.com/brianacton/status/3109544383

Few months earlier to this, he was also turned down by Twitter.

Twitter turns down Brian Acton in 2009

Twitter turns down Brian Acton in 2009

https://twitter.com/brianacton/status/1895942068

Mark Zuckerberg comments on the acquisition

“I’ve known Jan for a long time and I’m excited to partner with him and his team to make the world more open and connected. The growth rate they have today and the monetization that’s early but promising and in place, we see a clear trajectory ahead and are excited to work together on this.” – Zuckerberg

What to expect for the WhatsApp users in near future?

Well, Facebook isn’t just giving money away and will ensure that it earns back the money spent, so expect to see Facebook Ads appearing on an updated App version of WhatsApp. This sure is a blow to Google who has been dominating the ads sphere online. Koum though believes that the acquisition won’t change much in terms of Ads

“We think that for our product, advertising is not necessarily the right way to go. We think we have a very solid monetization system in place.” – Jan Koum

The development for such Apps is encouraging for all entrepreneurs and we should see more such big swallowing in the near future by the Big 4 (Facebook, Google, Microsoft, Yahoo).

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W.G.T. Fernando is an author of over 15 ICT books and Founder/CEO at GTS. Gihan is a former lecturer at the University of Moratuwa, Sri Lanka. He began his education at Thurstan College before going to Wycherley International School. He graduated with Honors in Computer Science at University of Liverpool in the UK and MSc in Advanced Software Engineering at Kings College, University of London.

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