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Thursday, February 20, 2014

Brief analysis on Facebook acquiring Whatsapp

Facebook could develop a new app instead of buying Whatsapp for such a huge amount but, it may not survive/ grab the attention of the existing Whatsapp users.

Recently, Telegram has been into picture with more enhancements and upgraded options compared to Whatsapp. People tried to migrate to Telegram, but could not succeed because people are not ready to make gap between their regular conversations.

I asked few whatsapp users  - “Why can’t we just migrate to Telegram as it has much more better options?”. They simply said – “Whatsapp is running good. There is no breakup in conversations or have not faced any kind of bugs. More new apps may come in future with more options; do we just keep migrating from one to other??.. Almost every feature has been embedded in Whatsapp viz., texting, voice messaging, photo sharing, video sharing and group messaging.“

Almost 75% of the Smart phone users in the world are using Whatsapp. The messaging in Whatsapp is 10 times more than regular SMS’ing.

FB messenger connects only FB users, and Whatsapp connects all smartphone users. On this acqui-hire, Zukerberg says – “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 to use every day. WhatsApp is a simple, fast and reliable mobile messaging service that is used by over 450 million people on every major mobile platform. More than 1 million people sign up for WhatsApp every day and it is on its way to connecting one billion people. More and more people rely on WhatsApp to communicate with all of their contacts every day.”

In my perspective, the acquisition will enable Facebook to strengthen its customer base/ user accounts and enhance its services using Whatsapp as its ingredient in its social messaging service.

How ever, still I think US$19 billion is a big amount for Whatsapp!!!.. Anyways Congrtulations to the Whatsapp team. 

- Hemanth Lagisetty
   Market Research Analyst