Facebook buying Whatsapp for $16 Billion? WHY??

[Billy]

I do not understand this at all, they can get this free on the app store !?!?

I'm now thinking money is changing hands unnecessarily but why ??? I am no conspiracy theorist but...

[GavinAndStaceyFan]

I am not sure why, I can only assume it was because it makes Facebook more popular. I read on the BBC website that WhatsApp was becoming more popular with more downloads than Facebook so I guess Mark did it because of that reason.

[Edcel Celiz]

advertisement sir, advertisement.

[Julius]

"they can get this free on the app store !?!? "

Lol.
Want to rephrase that?
FB are Buying Whatssapp to integrate in to Facebook.
It is to do with Market Share.

[TechAhead]

The few reasons why Facebook is looking to buy WhatsApp are
1) Global reach, so it can reach in countries where it has failed to make users like Brazil, China, Russia
2) Generate more revenue
3) Get more registered users so it can show more ads to these new users and make money

[HoovR]

You have no idea what you are talking about, this will end up being a great purchase by Facebook.

[Neel Sharma]

Yes, #Facebook #buys #WhatsApp!!

Facebook's purchase of messaging service WhatsApp for up to $19 billion in cash and stock is one of the largest acquisitions ever in the technology sector. There may be reasons like,the mobile growth has been the steadfast goal of the social network from last 3 years, and it has recently begun to see more profit from its mobile app initiatives than computers.

[pratik]

i think its a right decision,,,, what if orkut would have acquired fb some year before for a massive amount??,, maybe something like that wuld be in Zuckerbergs mind

[Phunsukh27]

Zuckerberg said that WhatsApp — a cross-platform mobile app that allows users to exchange messages without having to pay telecom charges — was worth the steep price because its blistering growth around the globe has it on a clear path to hit a billion users and beyond.

"Services with a billion people using them are all incredibly valuable," Zuckerberg said while discussing the purchase price during a conference call with analysts.

Silicon Valley-based WhatsApp started the year with 50 employees, most of them engineers, and the startup said that all of its stakeholders have approved the take-over.

The purchase includes $12 billion in Facebook shares and $4 billion in cash. It calls for an additional $3 billion in restricted stock units to be granted to WhatsApp founders and employees that will vest over four years.