Facebook Inc (NASDAQ:FB) has spent a large amount in acquiring WhatsApp, the most popular messaging app, and this acquisition has come at a huge cost of more than $19 billion. Though the general perception might be that Facebook would want to monetize its investments and seek good returns ASAP, a report indicates that the social network has no such plans for the time being.
No near-term plan for WhatsApp
A report from Reuters states that Facebook Inc (NASDAQ:FB) CEO Mark Zuckerberg, who was in India on Thursday, revealed that they have not yet planned how they will use WhatsApp for making money.
The WhatsApp deal finally closed on Monday. The deal was made up of cash and stock, and its value had risen from $19 billion to $22 billion because of the company’s share price going up. WhatsApp will not be merged with Facebook and will remain a standalone app, as assured by Facebook to U.S. regulators.
Facebook Inc (FB) shareholders need an explanation
At present, there are a number of messaging apps, but WhatsApp leads all of them with more than 600 million users. This app is used for sending and receiving messages on mobile devices. The plans for the acquisition of WhatsApp were announced by Facebook Inc (NASDAQ:FB) in February, and this was a question of major concern among analysts as to how the company is planning to make money of it to justify the humongous amount it paid for the company. WhatsApp, which is available on all platforms without advertising, charges only a 99-cent annual subscription fee, which is waived for the first year.
This acquisition has given the social network an opportunity to improve its financial performance by putting it in a commanding situation to get its hands on WhatsApp. It is expected that very soon, Zuckerberg will address shareholders to explain how he plans to monetize the massive acquisition the company has made.
On Thursday, Facebook Inc (NASDAQ:FB) shares closed down 2.08% at $75.91, while year to date, shares are up by over 40%.