Facebook to Acquire WhatsApp

This has to be about users and not technology, resources or anything else…

I saw this the other day and it really made my jaw drop. I wasn’t surprised that Facebook made the acquisition. I was surprised at how much Facebook paid for the organization. The total deal is worth $19B – $4B in cash, $12B in stock and $3B in restricted stock for the founders and other employees.  The restricted shares vest over period of four or so years.  The deal also provides WhatsApp founder Jan Koum with a seat on Facebook’s Board of Directors.

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WhatsApp is an instant messaging app that sends messages over a data connection as opposed to GSM or CDMA.  Because the app sends text messages as data over your smartphone’s data connection, they don’t count against your text messaging limit.  The app claims to have over 450M active users, and is signing up users at the rate of one million a month.  That’s a lot of users…

WhatsApp is similar to Apple’s iMessages platform which sends text messages via an iPhone’s data connection and not a cellular connection to avoid being double charged for the message.

Google also made an offer of $10B for the company, but was ultimately turned down.  Google wanted to make certain that it didn’t get surprised with the WhatsApp deal as it did with Instagram when Facebook snatched it out from under them in 2012.  They were so determined to insure that this didn’t happen that they were willing to pay millions for to WhatsApp in what’s being called a “right of notice” offer. I can’t find out if that agreement was actually consummated or not.  However, Google wanted the right to be notified if another company entered into acquisition talks with WhatsApp; and again, they were willing to pay millions for that. In this case, it likely would have been a waste of money for Google.  Facebook’s offer was nearly double what Google had proposed.

From what I’ve been able to see so far, Facebook plans to leave WhatsApp alone. They did the same thing with Instagram when they acquired them in 2012. They purchased the asset, with the intent of doing – something – with it later.  What that is, and how Facebook might actually make money from or with that asset has yet to be determined.

When I heard about this, I thought, “well, WhatsApp is going to be the new Facebook Messenger,”  but that doesn’t seem to be the case. Facebook Messenger, Facebook’s own text messaging app, isn’t going anywhere.  Some analysts think the acquisition supports Facebook’s strategy to be dominant in the mobile world.  They want to be a go-to company for mobile apps and messaging, especially in emerging markets.  Some analysts thing this is a survival tactic.  WhatsApp is strong in Europe and South America, where it enjoys approximately 80% market penetration in countries like Brazil, Germany, Portugal and Spain.  It is, in fact, the largest mobile messaging service in India, Brazil, Mexico, Nigeria and South Africa, according to Engadget.

What do you think? Is this a good buy for Facebook?  Will WhatsApp really continue to function independently as Instagram does, or will Facebook actively try to do something with the app sooner rather than later?  I’d really like to hear what everyone else thinks.  Why don’t you give me your thoughts on the matter in the discussion area, below?

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Last week’s highlights #5

We left a busy week behind us with lots of good articles and reviews. Let’s take a look:

Traktor Pro 2 – the maximum freedom in DJing

If you spin tracks for a living or on the side, then you need to listen up. I’ve looked at some mixing software over the past few months, but none have really “sent” me. Traktor however, is a completely different story. It’s a DJ-ing and track mixing application and its available for both Windows and Mac, and quite frankly, it floored me.

If ain’t dirty, don’t clean it

Amid all the Holiday Hullaballoo, malware attacks can be nasty. However, beware where the warnings are coming from. You must have a malware scanner on your computer – Mac, Windows or Linux – don’t compute without one. Period. You also need to heed the warning dialogs they display. If you’ve got a bug, or if it catches one before it infects you, do what it tells you in order to get rid of it. However, do yourself a favor, mind where the dialog boxes are coming from.

Make use of a synchro calendar with GoCal

In case the default calendar app for iOS isn’t enough for you and you want something more advanced and with some additional synchronization features, GoCal can be the solution to your needs. At its core, GoCal is nothing else but a calendar client that can integrate the default iOS calendar, and the Google Calendar. Actually the Google Calendar integration is the main reason you should try this software out.

2011 Gift Guide Part 2 – Suggested Gifts

Following the 2011 Gift Guide Part1 – Ok, Great! Now what should I buy? article here are my recommendations for just about every budget level, given our recent thorough discussion about Mobile Device Ecosystems. It’s true.  The hottest ticket items this 2011 Holiday Season are all mobile – tablets, smartphones, music players, ultra-portable notebooks (the netbook is dead) – and the like will undoubtedly find their way to a gift box near you. Ecosystem aside, there are some really cool gadgets out there right now, and figuring out which basket to put all your eggs in can be confusing.

Pho.to Lab lets you create fun photo montages on your iPhone & Android

Android has some great picture and image editing apps to adjust and enhance your photos, such as Photoshop Mobile and PicSay. But what if you just want to add some cool photo frames and effects to your pictures? We all love having fun, right? Then you definitely have to try Pho.to Lab. This simple app is a winner for two reasons: first, it is very easy to use and second, it has more than 450 awesome effects for your photos!

Zemana AntiMalware

You’ll hear me say it over and over again – you simply can’t run a computer now-a-days without some kind of antivirus or security software running in the background.  You’re just asking for problems if you think you don’t need one…and if you get a virus, bug or worm, THEN what do you do??  This is why I’m thankful for applications like Zemana Anti-Malware. It’s a specialized malware scanner for Windows and it’s the kind that most people need.

NoteLege – your iPad note-taking app that takes the hassle out of organizing your notes and thoughts

We’re in the information age now. Everything gets around faster and the number of sources and amount of information we need to remember can get overwhelming. Now, for those who own an iPad, let me suggest you a great note-taking application that combines handwriting, typing, audio and video recording. The application is called NoteLedge and it’s developed by Kdan Mobile.

iOS 6 Wish List

iOS5 is out and available to all supported iOS devices. With the iPhone 5 and iPad 3 rumored to be coming in 2012, let’s take a quick moment to speak to a couple desired features. The release of the iPhone 4S also gave us iOS5. Battery life issues and improvements not-withstanding, any additional additions or life altering improvements will need to wait until iOS 6 is released. In light of that, I’d like to speak to a quick wish list for iOS6. The list is below, in no particular order.

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