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Facebook Buys WhatsApp for $19 Billion

Feb 20 2014, 2:20am CST | by , in News | Technology News

Facebook Buys WhatsApp for $19 Billion
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What's Up? WhatsApp gets acquired by Facebook for ridiculous amount of money. That is up.

Facebook spends all in all $19 Billion to get WhatsApp, the mobile messaging sensation. WhatsApp has over 450 million users with a dramatic high engagement of 70% of users who use WhatsApp daily.

Facebook says that the WhatsApp messaging volume is reaching soon the global SMS volume. Which is understandable as SMS volume is shrinking because of iMessage, WhatsApp and other free messaging systems.

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

 

I think for WhatsApp users the acquisition is good. Facebook is giving WhatsApp a stable home. My question is on how Facebook will earn that $19 Billion they just spent. Sure WhatsApp charges a $1 per year for using it (first year is free). This is some omen considering the service has 450m users.

One mind boggling fact is that WhatsApp has only 32 engineers. That means WhatsApp is only needing one engineer for 14 million users. What are other companies doing wrong?

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