Bloomberg Tech Reporter: Facebook to buy WhatsApp

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They're never going to see the color of that money again with WhatsApp. They're overpaying and that drop in after-hours trading says the markets think as much; $2B market cap loss.

But, the fact that they're willing to pay this much tells a lot about the company.
1. They're crazy concerned about being over being beaten in popularity by competing platforms, even if they aren't directly related.
2. They're willing to pay whatever it costs to stay relevant.

Interesting gamble.

I've never seen anyone use or even know about WhatsApp in real life, only on the internet. Unlike things like, say, SnapChat. I had no idea it was that popular
 
How old are you?

I'm 25 and since university, every single person I've met at SFU or UBC has used it.

I'm a student at SFU right now. All FB Messengers.

I mean... everyone has the app, but no one ever uses it.

Looking at my contact list, 90% of people still have the "Hi there! I am using WhatsApp" status, which indicates to me that a lot of people installed it and forgot about it.
 
Yeah Whatsapp is huge, but there are lots of alternatives. I use Wechat with a lot of my friends.

Anybody texting (SMS) on a smartphone is doing it wrong.
 
Clearly nobody sees the market for this. There will be a time where billions of people will be connected all the time over Whatsapp, even more than on Facebook.

Whatsapp will be like the Google search engine.
 
First 12 months free. 1 dollar for the next 12 months. Allows unlimited texting. Can send pictures and videos. Can record audios. Create group chats. Etc.

Sounds like normal texting...

I guess the draw is that you can get a minimal texting plan from your carrier and just use Whatsapp?
 
Sounds like normal texting...

I guess the draw is that you can get a minimal texting plan fro, your carrier and just use Whatsapp?
No need for login, once setup with your phone number you can text with everyone in your phonebook,

It is just THE GREATEST KILLERAPP OF ALL TIME.
 
Clearly nobody sees the market for this. There will be a time where billions of people will be connected all the time over Whatsapp, even more than on Facebook.

Whatsapp will be like the Google search engine.

Billions of people are already connected by email and email is free and already on every smartphone ever. But I guess I'm a dinosaur.
 
Looking at my contact list, 90% of people still have the "Hi there! I am using WhatsApp" status, which indicates to me that a lot of people installed it and forgot about it.
Not necessarily. I've never bothered to change the status yet I still use the app all the time.
 
The move marks the social giant’s biggest acquisition to date, as Facebook paid $16 billion in cash and stock for the company. In addition, the deal includes another $3 billion in restricted stock units for WhatsApp employees, which will vest over a period of time.

As of December, WhatsApp had only 50 employees working at the company.
Re/Code
Those employees are about to get rewarded handsomely....instant multimillionaires.
 
I guess everyone I know just has every messaging app like I do, and use whatever they think the other person wants to use. Whenever I text schoolmates I use FB messenger, whenever I text Japanese friends I use Line, etc.

Since I never message anyone on whatsapp, I never get any messages on whatsapp. But maybe others do....

Billions of people are already connected by email and email is free and already on every smartphone ever. But I guess I'm a dinosaur.

My little brother is a luddite, uninstalled all his IM and social media, and said "if you need something, email me".

Even though he has push email.... writing an email feels odd. It's meant for long form communication. I never message him.
 
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Billions of people are already connected by email and email is free and already on every smartphone ever. But I guess I'm a dinosaur.
Yeah but I don't have the email addresses of all my friends. Whatsapp lists all friends just over the number in my phonebook.

It's much faster and much better than email.
 
Seriously. It's just users x $$ = value. No business sense at all.

$16,000,000,000/400,000,000 users = $40 a user. Just nuts.

Not necessarily.

Facebook are playing the long game.

Realistically they're not interested in anything that WhatsApp has to offer but it's user base.

WhatsApp having 450million users world wide would pose a very real threat to facebook in future if those users were weaned onto facebook competitive like features.

Facebook have done the classic "terminator" move by taking out a potential future competitor before it has chance to become a real threat.

To secure Facebook's position as the goto social network for the foreseeable future $16b is cheap.
 
already have it but the ui is hideous, whatsapp on ios looks clean and straight forward, ok now that i think about it FB messenger looks almost the same. goddamit!!!!
Yeah, it's ugly as sin. It's also really slow and bloated. It does have free calling though, which is nice for international calling. Unfortunately, the call quality is awful and it doesn't connect a lot of times. Meh.

Actually, there's also Line. That's really popular in Japan in particular but the rest of Asia in general.

Why innovate when you can buy innovation?

To be fair, there is absolutely nothing innovative about WhatsApp. They just became the most popular of the text message replacement apps for whatever reason.
 
My whole family uses Whatsapp. Even my mom. Basically free text messaging and sending pics and video.

I'm betting Facebook will look to monetize this more intensely.
 
Please please please don't send me invites for Dragon City or whatever what's hip with kids these days over WhatsApp. Please.
 
where have you people who've never heard of whatsapp been living? Antarctica?

I'm in California. I've heard of WhatsApp, but never known anyone to use it and never tried it myself. Easily over 90% of the people I know have an iPhone, including all of my family. I haven't received a text message that wasn't an iMessage in about a year, with the exception of maybe one or two messages.
 
Lol @ all "welp, time to delete the app and go back to sms" reactions. Why?

Nothing will change in the near future, your data will still be stored on their servers. It literally won't make any difference to delete the app now. Also, the majority of everyday users will keep using it and not giving a single fuck about this news.
 
My whole family uses Whatsapp. Even my mom. Basically free text messaging and sending pics and video.

I'm betting Facebook will look to monetize this more intensely.
This is not about monetizing.

This is about keep being one of the most important IT companies in the world.
 
Bad bad bad! The latest updates for the android facebook app required access to your SMS, no doubt for data mining for targeted adds. I disabled automatic updates for the app when I read that. No doubt they are going to datamine the shit out of your whatsapp conversations. I can already see the following whatsapp convo:

"Hey honey, what's for dinner tonight?"
"I was thinking pizza"
*pizza hut add appears on your facebook wall.

I'm not gonna stop using it as it is too ingrained in my life. It's one of the few smartphone features I use next to browsing. But this prospect is really shitty. I guess I'm just gonna have to lube up and take it.
 
Lol @ all "welp, time to delete the app and go back to sms" reactions. Why?

Nothing will change in the near future, your data will still be stored on their servers. It literally won't make any difference to delete the app now. Also, the majority of everyday users will keep using it and not giving a single fuck about this news.

No it's more about that facebook is doing the same thing there doing with instagram making it closer together i don't have instagram but it will show what will happen in over time people will find a alternative after they hear this because we all like seperate things. Also i don't like it that facebook will get my personal phonenumber and going to do i think not so fun things ahead.
 
Lol @ all "welp, time to delete the app and go back to sms" reactions. Why?

Nothing will change in the near future, your data will still be stored on their servers. It literally won't make any difference to delete the app now. Also, the majority of everyday users will keep using it and not giving a single fuck about this news.
Because I don't need a corporation like FB prying into my life through my text messages.

I'm sorry, I don't trust them now that they're a public company.

No it's more about that facebook is doing the same thing there doing with instagram making it closer together i don't have instagram but it will show what will happen in over time people will find a alternative after they hear this because we all like seperate things. Also i don't like it that facebook will get my personal phonenumber and going to do i think not so fun things ahead.
Yup...TMI
 
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