Facebook Inc (NASDAQ:FB) purchase. On Wednesday, the leading social media website acquired real time messaging application WhatsApp.
Google’s purported offer
It was rumored Google Inc (NASDAQ:GOOG) wanted to purchase the app and offered $10 billion. Facebook offered $16 billion and awarded the app’s founders/employees with an extra $3 billion in restricted stock units. These units will take about four years to vest after the deal is closed. In addition to offering less money, Google also failed to offer a seat for the company’s board of directors. Not surprisingly, Google Inc (NASDAQ:GOOG) has yet to confirm the rumors of their purported attempt to purchase the app. In 2013, it was rumored the search giant wanted to buy WhatsApp for about $1 billion but the latter quickly denied such rumors.
WhatsApp is a cross-platform messaging service that allows users to participate in group chats, send photos or videos, and share locations. This instant messenger is a boon for those who want to chat with their friends via SMS without having to pay messaging fees. It’s also available on most major platforms including iOS, Android, Windows Phone, BlackBerry, Nokia S40, and Symbian.
What Facebook could do with their new purchase
Facebook’s acquisition of WhatsApp can only mean good things for the company. In order to continually dominate the world of social media, Facebook Inc (NASDAQ:FB) needs to buy up many of the most popular social apps. This will help the company build on it’s empire and focus on taking it to the next level.
This wasn’t the first major acquisition the website made. Nearly two years ago, Mark Zuckerberg and his company bought up social image sharing application Instagram for $1 billion. This was a big purchase for Facebook Inc (NASDAQ:FB) that helped them expand to new territory. It’s likely Facebook will keep WhatsApp as is like they did with Instagram, it will probably be used primarily to expand Facebook’s portfolio and profits.