Friday 21 February 2014

Facebook $19bn Dollar acquisition of Whatsapp;Worth it?

 
 
Hmmm,okay $19billion is like 1.6 Trillion Kenya Shillings.Yeah as huge as our National budget.This means whatsapp could just ride our annual economy.Anyway I'm just noting that to show what technological inventions can do.

Recently I covered an article about a possible demise of facebook from the high status of social networking it enjoys.Zuckeberg seems to have overreacted,though in a surprisingly greater move.Is it true that messaging apps are now taking over

"The deal marks the coming-of-age of messaging apps, which let people send text messages and share photos and other stuff without incurring charges from telecoms firms. WhatsApp is free to use for 12 months and then costs a mere 99 cents a year. Plenty of other such apps have sprung up, including Viber, which Rakuten, a Japanese internet giant, recently bought for $900m, and the immensely popular WeChat, which belongs to Tencent, an innovative Chinese company."says The Economist.

Within five of four years of its inception,Whatsapp has reached 450 million users with an active 72% online users.This is a higher rise even more than facebook.
Whatsapp now adds a million users a day.
"But does the whopping price tag for WhatsApp make sense? Assuming it keeps adding users at its current rate of 1m a day—and they end up paying for its service—it could generate hundreds of millions of dollars of revenue. Twitter, which reported $665m of revenue last year, has a market capitalisation of $30 billion. Much will depend on how well Mr Zuckerberg gets on with Jan Koum, the boss of WhatsApp, who is joining Facebook’s board and will run the app as an independent business. Mr Koum, who has a well-known aversion to collecting people’s data and plastering advertising over his app, seems an odd bedfellow for Facebook. But the deal was clearly one that he couldn’t refuse."The Economist 

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