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2/20/2014
12:05 PM
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Facebook Acquires WhatsApp: 3 Key Benefits

Facebook's $19 billion deal to buy messaging service WhatsApp may raise eyebrows, but it's a smart move. Here's why.

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Kristin Burnham
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Kristin Burnham,
User Rank: Author
2/21/2014 | 9:38:40 AM
Re: WhatsApp
That's a really interesting thought. For now, Facebook says WhatsApp will continue to operate independently, but it could have been a very different case if Google was successful in its bid to acquire it. I wonder which scenario fares better for WhatsApp customers?
Whoopty
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Whoopty,
User Rank: Ninja
2/21/2014 | 9:21:15 AM
Re: WhatsApp
I thought one of the most interesting turn of events in the lead up to this announcement, was the rumours that Google CEO, Larry Page, was also interested in WhatsApp. Facebook share holders may see this as Facebook buying growth rather than developing it, but if Google was worried about its biggest social nettworking rival taking over the service, it seems like it might have been a good move for Facebook to snap it up. 

It certainly will be interesting in the months to come, when Facebook finalises the deal, to speculate how it might have turned out differently if WhatsApp had accepted an offer from Google instead. 

Perhaps WhatsApp would have become the default messaging function on Anndroid handsets? 
Kristin Burnham
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Kristin Burnham,
User Rank: Author
2/21/2014 | 8:48:44 AM
Re: WhatsApp
It's about increasing their audience on one level, but more than anything it's about diversifying and and data. It knows that not everyone (ahem, teens) wants Facebook, but their information is still incredibly valuable to the company. Pair that audience with mobile data, and it's a goldmine.
anon3676294978
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anon3676294978,
User Rank: Apprentice
2/21/2014 | 7:57:40 AM
Take an example of WhatsApp
Great news validating OTT communication market as it is being disrupted with new technology. No need to be a Cisco / Microsoft / AT&T to build powerful social / business communication technology anymore. There is a number of emerging platforms such as QuickBlox http://quickblox.com/, Twilio, TokBox etc enabling you to build functionality such as WhatsApp / Viber / Skype / FaceTime literally in days. We shall expect to see more success stories from the likes of WhatsApp.
Thomas Claburn
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Thomas Claburn,
User Rank: Author
2/20/2014 | 5:43:37 PM
Re: WhatsApp
How long can this acquisition strategy keep up? Facebook seems to be spending more and more just to have access to an audience that seems to be looking for something other than Facebook.
Lorna Garey
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Lorna Garey,
User Rank: Author
2/20/2014 | 2:31:21 PM
Re: Out of Touch
Terry, It's a $16B company because Facebook is willing to pay $16B - presumably to beat out Google.
Lorna Garey
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Lorna Garey,
User Rank: Author
2/20/2014 | 1:54:42 PM
Re: WhatsApp
Ah, I see. That does suggest that mining the data will be difficult if that policy remains.
TerryB
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TerryB,
User Rank: Ninja
2/20/2014 | 1:29:55 PM
Out of Touch
Just another example of the mobile world I do not get. This app basically replaces need for a $20 plan for unlimited messaging for a $25-$40 data plan to do same thing.

I guess if you are committed to data plan anyway, there is a savings. But never would have guessed that would make you a $16 billion company.
Kristin Burnham
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Kristin Burnham,
User Rank: Author
2/20/2014 | 1:21:24 PM
Re: WhatsApp
Zuckerberg only said that WhatsApp will continue to operate independently of Facebook, so we'll have to see what changes it does and doesn't make.

From WhatsApp's help page: "WhatsApp communication between your phone and our server is fully encrypted. We do not store your chat history on our servers. Once delivered successfully to your phone, chat messages are removed from our system." While WhatsApp doesn't save the content, it is stored on the phones your contacts use. That's a big difference between it and Snapchat -- once you view Snapchats, they disappear from your phone.
Lorna Garey
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Lorna Garey,
User Rank: Author
2/20/2014 | 1:01:33 PM
WhatsApp
Kristen, I read that WhatsApp messages are deleted almost immediately, a la SnapChat. Do you think Facebook will continue that practice, which is surely part of the appeal to teens (though as a mother I shudder to think why that is)?

Seems like it would put a crimp in data analysis to delete messages.
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