Whatsapp For $19 BN, What Could Be The Reason?


Till this time you must have heard about the epic buy of Whatsapp for $19B. It is the biggest buy so far. But why? I mean, come on, whatsapp doesn’t have a revenue model, its doing good but the market is volatile and nobody knows if people will keep using whatsapp once it becomes paid since they have other options like whatsapp. So what’s the point?

There are few things we could think of, again, its just a perception and please don’t consider it as a news.

  1. The social market is volatile and nobody can guarantee to keep the market share in next 10 years. So there has to be different products for any brand to sustain in the market. What if someday Facebook fails? Well, now they have Instagram and Whatsapp  – positive reason
  2. As per the trend whatsapp is soon going to cross 500M benchmark and if, say suppose once they introduce paid version and only 10% remains in Whatsapp then too we are talking about 50 million users, if they pay 1$ each Facebook will only get $50 Million. So this can’t be a reason – negative reason
  3. Facebook wants to get into personal conversation like Google does through gmail and then use these conversations to make the system better for user since they would understand the users psychology – may be reason
  4. Facebook will integrate its system with whatsapp in such a way that people can start whatsapping from facebook itself or people can start facebooking from whatsapp itself and this can be a major game changer – strong reason
  5. Facebook just wants to improve its reach. facebook wants to keep whatsapp just to keep all those valuable users
  6. Facebook will start advertising in whatsapp too – whatsapp has already revealed that this won’t be done – negative reason

So far we believe there are 3 major reasons behind this epic buy and these three are,

  1. Social media market is volatile and Facebook wants to strengthen its position through whatsapp
  2. Facebook will integrate its system with Whatsapp to reach more people and to engage more people
  3. Facebook wants to increase the number of total user

Let us know your thought on this topic.

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