Facebook has just announced that they will be purchasing the popular messaging app WhatsApp for $16 billion. Not million. Billion. WhatsApp has over a billion users across the globe, making it one of the most used messaging apps. Facebook will be paying $4 billion in cash and $12 billion in shares for those 1 billion users and the team behind it.
The story on how WhatsApp will operate now is similar to what Facebook has done with Instagram. The two will still operate mostly independent from one another. Facebook hopes to help accelerate growth and user engagement with the purchase of WhatsApp. We can’t say yet how this will impact the existing WhatsApp app for Windows Phone.
The real question here is about the $16 billion. That seems like an extraordinarily high amount to pay for WhatsApp. Is a messaging app really worth that kind of dough? Sure, WhatsApp is popular now, but people are fickle about messaging. They can switch at a moments notice when something new comes around. Did Facebook make a smart deal?