595 FB WhatsApp Acquisition Essay examples

Submitted By Joyce886291
Words: 427
Pages: 2

Facebook - WhatsApp Acquisition

Josh Hill
Yueyuan Zhou

• Acquisition detail
• Company detail
• Industry detail
• Reasons
• Benefits
• Concerns

Acquisition details
• Date : 18th February 2014
• Acquirer company : Facebook inc
• Acquiree company : WhatsApp inc
• Acquisition Highlights

Acquisition amount : $19 billion
Separate operation, just like Instagram
Jan Koum to join FB’s BOD

Acquirer/Acquiree details



Feb 2004

Feb 2009


Mark Zuckerberg, etc.

Jan Koum, Brian Acton





Social Networking

Instant Messaging

Active Users (by Dec 2014)

1.39 billion

700 million


make the world more open and connected

make WhatsApp available to everyone in the world

WhatsApp’s Rapid Growth years • not ruining the user-experience with advertisements
• It has 450 million monthly active users (MAU)
• 72% of the MAUs are daily active users (DAU) – industry standard is about 20%
• 1 million users join WhatsApp daily in first 4

Industry detail
• Fragmented global market
• FB’s Messenger is 1st only in US market
• WhatsApp is the leading app in South Africa, Brazil and Indonesia and second to FB messenger in U.S.
• 16-24 age group

Reasons for acquisition
Why is FB spending so much money?
● “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable.” - Mark Zuckerburg, Facebook CEO
● Tech firms fighting to build mobile businesses
○ FB expanding to Europe, Latin America, and Asia
○ FB attempting to address generational shift in way we connect (mobile) and continue to attract younger audiences
● FB using WhatsApp as a profitable data source for core advertising business
● “The right strategy is to focus on connecting the people before aggressively turning them into businesses.” Mark Zuckerburg