The Facebook acquisition of WhatsApp may seem excessive, and some insiders echo this sentiment. Reviewing the acquisition may present a different perspective, and the $19 billion price may not seem excessive after all.
WhatsApp users fit the demographic mix of customers that Facebook may be searching for. Facebook enthusiasts display a preference for mobile messaging that works as a social network as well.
You can send messages to a single recipient or to many recipients with WhatsApp. 600 million photos are sent daily with WhatsApp, and this is greater than the number of photos that are uploaded to Facebook each day. 62 percent of Facebook users are active each day, but WhatsApp reports daily activity of 70 percent.
Facebook wants to grow its base, and the WhatsApp purchase
mirrors the Instagram acquisition of 2012. Facebook has lost some of its younger customers, but WhatsApp may help them recapture the teen and tween mobile messaging market.
WhatsApp is one of the leading social networks in terms of growth. The user count is far beyond that of Facebook, Gmail, Twitter, and Skype. The WhatsApp trading price is lower than prices for LinkedIn, Twitter, Facebook, and Snapchat, and this may make WhatsApp a bargain in every way possible.