In 2014, Mark Zuckerberg, CEO of Facebook Inc., bought the messaging app WhatsApp for an astounding $19 billion. At the time, it was the largest acquisition in Facebook’s history and one of the largest acquisitions in US tech industry history. The purchase raised eyebrows across the tech world, as many questioned why Zuckerberg would pay such a hefty sum for an app with no revenue stream.
Zuckerberg had his sights set on WhatsApp from the get-go. Despite having no revenue when acquired, WhatsApp had grown to become one of the most popular messaging apps in the world with over 450 million users – more than double what it had been when Facebook first expressed interest in it that same year. This meant that Zuckerberg could immediately tap into a huge user base and leverage it to grow further.
The acquisition was also part of a larger trend in Silicon Valley: companies like Facebook were buying smaller startups to gain access to their technology, user base and talent pool. WhatsApp was a prime example of this trend as its technology was considered to be cutting-edge and its team of engineers highly talented. By acquiring WhatsApp, Facebook could instantly expand its range of services while also gaining access to its impressive engineering talent pool.
WhatsApp also proved to be a major asset for Facebook’s goal to expand into international markets; at the time, only 10% of WhatsApp users were found in developed countries like the US or UK – most were located in developing countries where Facebook hadn’t yet made much headway. The acquisition allowed Facebook to quickly expand into these regions and monetize their user base with Targeted ads or subscription services tailored for these regions.
Ultimately, Mark Zuckerberg’s decision to purchase WhatsApp proved itself well worth it: since 2014, WhatsApp has grown from 450 million users worldwide to over 1 billion today and continues to be one of the most popular messaging apps around the world.
Conclusion: Mark Zuckerberg saw immense potential in WhatsApp when he bought it out for $19 billion back in 2014 – not only did it have cutting-edge technology and a huge user base but it also provided him with an opportunity to quickly expand his range of services while tapping into international markets.