WhatsApp, the popular messaging app founded in 2009, sold to Facebook for $19 billion in 2014. This acquisition made WhatsApp one of the most expensive companies to be acquired at the time, and it had many people asking why did WhatsApp sell to Facebook?
When WhatsApp was launched, it was meant to be a free messaging service. It quickly gained popularity due to its simplicity and ease of use.
WhatsApp had over 450 million active users by 2014 and was quickly becoming one of the most popular messaging apps in the world. This made it an attractive Target for Facebook, who saw an opportunity to expand their reach.
Facebook had been looking for ways to increase their user base and expand their services. By acquiring WhatsApp, they would gain access to a large userbase that could help them grow even further. In addition, they could also leverage WhatsApp’s technology and resources in order to add more features and services to their platform.
WhatsApp also offered something that no other messaging service had: encrypted communications. This meant that messages sent through WhatsApp were secure from interception or tampering. Facebook saw this as an opportunity to improve the security of its own platform, as well as any future products or services it might create.
The acquisition also allowed Facebook access to a new market: international users. WhatsApp was popular around the world, particularly in countries where mobile data plans were expensive or unreliable. By acquiring WhatsApp, Facebook could now reach these users and offer them a reliable way of staying connected.
Conclusion:
The acquisition of Whatsapp by Facebook opened up many new opportunities for both companies. For Facebook it provided access to a large userbase which could help them grow even further, improved security features on their platform and access into international markets they couldn’t previously reach. For Whatsapp it provided financial security and stability while allowing them to continue developing their product without worrying about monetization or competing with other companies in the space.