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Minecraft Pocket Edition: Dead Mansion Portal to Hell - Episode 2 - Video
Facebook has bought messaging service Whatsapp for $16 billion. Source: ThinkStock
FACEBOOK said Wednesday it was buying the fast-growing messaging service WhatsApp for more than $16 billion in cash and stock, expanding the global footprint of the social networking giant.
Our mission is to make the world more open and connected. We do this by building services that help people share any type of content with any group of people they want. WhatsApp will help us do this by continuing to develop a service that people around the world love, Facebook said in a post.
WhatsApp has over 450 million users each month with 70 per cent active on any given day. They have also had strong growth, with 1 million new registered users each day.
WhatsApp has more than a million people signing up each day. Source: Supplied
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.
The deal includes $4 billion in cash and approximately $12 billion worth of Facebook shares. It also provides for an extra $3 billion in restricted stock units to be granted to WhatsApps founders and staff that will vest over four years.
Even if the deal doesnt go through, WhatsApp will still be well off. The agreement provides WhatsApp a fee of $1 billion in cash and $1 billion in shares.
Jan Koum, WhatsApp co-founder and CEO, said, WhatsApps extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. Were excited and honoured to partner with Mark and Facebook as we continue to bring our product to more people around the world.
The deal is Facebooks biggest acquisition and comes less than two years after Mark Zuckerbergs firm raised $US16 billion in the richest tech sector public stock offering.
It might not have figured in Facebooks calculations, but its deal to buy WhatsApp may help the social networking giant get access to the Chinese market.
Unlike Facebook which is blocked in China, the main site of WhatsApp can be accessed in the country and the product is available for download.
Facebook has previously said it has been examining its entry into the Chinese market. But authorities in the nation control sensitive content on social networking sites, either through deleting user posts, or blocking access to the services.
This happened in July 2009 when China cut access to Facebook, after protests in the western part of the nation broke out into ethnic violence. Despite the government block, Facebooks CEO Mark Zuckerberg once said he was interested in expanding the companys presence in China. In 2010, he was even spotted visiting a few of Chinas biggest Internet firms, fueling speculation that his company was on the verge of setting up a joint venture in the country.
Since then, Facebook has yet to formally dip its toes into the Chinese market. The social networks potential to help users organize over political issues is a key reason why Chinese authorities have blocked the site, according to analysts.
The mobile instant messaging client WhatsApp, in contrast, hasnt met such scrutiny in China. The main reason is probably that the product isnt that popular in the nation.
The app has over 450 million monthly users across the world, and Facebooks CEO believes it will eventually reach the 1 billion users figure. But In China, it lags way behind WeChat, the dominant mobile app in the instant messaging space from Tencent.
The app, also known locally as Weixin, has over 270 million monthly active users, most of them in China. But WeChat isnt simply a messaging app, and has evolved into a social networking platform to host other services, according to analysts.
Weixin is so well-established in China, said Mark Natkin, managing director for Marbridge Consulting. It continues to gain strength as Tencent expands the platform into far beyond mobile instant messaging, but into e-commerce, e-payment, and gaming and a variety of other areas.
Other Chinese Internet firms are also getting into messaging apps. Last year, e-commerce giant Alibaba Group launched Laiwang, and China Telecom has partnered with a local Internet firm to roll out its own YiChat app. But even these more established Chinese companies are struggling to compete with WeChat, Natkin said.
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WhatsApp deal gives Facebook a path to crowded China market
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