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1 billion for WhatsApp?


Swiftie

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Messaging app WhatsApp is in the negotiating phase over prices with Google in what could be Google’s next billion dollar acquisition, according to an inside source.

 

While the deal started four or five weeks ago, we've been told that WhatsApp is “playing hardball” and jockeying for a higher acquisition price, which currently is “close to” $1 billion right now.

 

We’ve suspected for some time now that a messaging app would be the next billion dollar acquisition deal following Facebook’s Instagram buy-out last year. 2012 was the year for photo-sharing apps, which you know everything about by now. So, 2013 has been dominating by the messaging app-meets social network market.

 

There are rumors that Google Babble will combine Google’s disparate communication services under one roof, but the platform still needs to do something to innovate in this space; mobile messaging has been taken over by smaller apps and Facebook has made a major push as well. Google hasn’t given an answer to this competition. Even Google Product Manager Nikhyl Singhal confessed to GigaOM in June of last year that “We have done an incredibly poor job of servicing our users here.” Messaging is a huge, gaping hole in Google’s mobile strategy.

 

Communication services are the pillar to any connected device; knowing this, if Google wants to be taken seriously on mobile, it’ll need a standout like WhatsApp to take under its wing, and it needs to work fast.

 

By all regards, the acquisition is a no-brainer. Apps like LINE, WeChat, Nimbuzz, Tango, KakaoTalk, and of course WhatsApp, are making a splash on mobile (and as social apps) in record time. LINE has gone from zero to 130 million users in just under two years. Even new entrant MessageMe has rocketed from zero to one million users in just 12 days.

 

Google can’t afford the time to rebrand and rebuild a competitive messaging app at the risk of entering the game too late – or, it needs to be able to work off the platform WhatsApp has already established and use this technology (and sensically, the user base) to fill out the purported Babble.

 

Also justifying the rumors is the fact that Google has approached WhatsApp before (as has Facebook). Look at it this way: WhatsApp is consistently the number one paid app in more than 100 countries with an enviable user base size spread throughout more than 100 countries and 750 mobile networks. To give you an idea about WhatsApp’s scale, on New Years Eve 2012 alone WhatsApp saw a record 18 billion messages processed in a day.

 

But more importantly, WhatsApp has a proven monetization scheme. Its yearly but nominal $0.99 subscription fee keeps the service ad-free. Behind the scenes however, WhatsApp also generates revenue through profitable partnerships with international telecommunications companies. For instance WhatsApp’s monthly local plan in Hong Kong with mobile operator 3 HK costs just $8HK ($1.03 USD) and an international package will run for $48HK ($6.18 USD) per day. And whatever Whatsapp is doing is working: The app has even had a direct hand in declining SMS usage around the world.

 

WhatsApp has remained mum about its revenue, but sources says that WhatsApp may have a ballpark of $100 million in yearly revenue.
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would be a good purchase, would probably add video calls then its a wrap

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Mad.

 

Funny how now the bigger IPOs just aren't risking the investment, but would rather see which little fish might actually come up with a great idea, do all the donkey work building reputation and fan base and just buy the damn thing.

 

A lot of people might question the amount for some of these app companies but what is £1Bn to Google?

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Thats a good buy imo. 

I heart what you saying about spying. But I always assumed they was always spying anyway. 

The fact you have record of your posts to received messages and backup all messages instantly says it all for me. 

 

Been using whatsapp mostly these days. Very convenient.

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That's all you need then. Another social media platform that google can analyse/spy on

innit

 

would prefer if they guys didnt sell and just kept it going as is

 

but if you made an app and it became successful on this sort of level

 

sell it and retire would be a very tempting idea

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*learns coding to make the next big thing*

Get an idea and pay for a company to design your app

Looks like the whole video messaging is the next big thing with keek and tout something along them lines just need to get the unique part which I don't think any of them have done yet

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Depends who you talk to and what you want done. I wanted to make a poker app couple years back but thought it was to hard to compete. You can find allot of coders who know their stuff on other forums.

Did you ever see the gadget show when they got company's to design apps for them the apps were free but the women from the show managed to get her app in the top 10 in the world.

Just think of something won't come over night but look at something like angry birds such a simple game bloody addictive and a banker

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