Technology

WhatsApp: Google Inc Offered To Buy, But Facebook Inc Won In The End

Facebook Inc (NASDAQ:FB) recently purchased an application that Google Inc (NASDAQ:GOOG) initially offered to purchase. On Wednesday, the leading social media website acquired real time messaging application WhatsApp.

WhatsApp: Google Inc Offered To Buy, But Facebook Inc Won In The End

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.

One Comment

  1. Facebook bought WhatsApp for two reasons:

    1) WhatsApp founder is a fellow Jew. Jewish people try to help each other more, and Zuckerberg would rather buy an app created by another Jew before anything else.

    2) Zuckerberg is loosing ‘quality’ users. He is gaining lots of third-world users, in Bangladesh and Pakistan, who all use the mobile phone because that’s all they have. However, these users don’t have any money. Advertisers will soon realize they are wasting money on Zuckerberg’s website (aka Facebook). Zuckerberg it trying to buy new users, to make sure he does not look like a fool, without any sheep in his pasture.

    Unfortunately, WhatsApp is already out of fashion. Viber, Line, Hanger, … they are all gaining ground. Messaging apps are simply too easy to build. Zuckerberg probably only achieved goal 1 in this deal, i.e. make a fellow Jew rich. Otherwise Facebook lost. Google won, by avoiding WhatsYesterdaysApp :)

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