The $19 billion acquisition of Whatsapp by Facebook Inc, set new records in Silicon Valley. Last Friday the deal was closed at a price higher than what was decided on the deal. The rise in Facebook’s stocks resulted in a $22 billion price tag for the messaging service, Whatsapp. Mark Zuckerberg, who is trying to increase the Internet’s reach to every part of the world said that the company has no plans to monetize at the moment.
Believe it or not, but spending a humongous amount of money and still following the vision–an ad-free messaging service, is a bit odd for Facebook, considering the amount of revenue it generates through its platform from advertising. Zuckerberg said that it will stay as it is and there are no short-term plans as such. The application, which was earlier rumored to be integrated into the social media platform, will run on its own. The service remains intact as it was before the acquisition.
Facebook acquired Whatsapp because of its popularity and the increasing number of users it was enjoying on a daily basis. It is pretty clear from Zuck’s that the social giant is not at all eager to get returns on the $22 billion investment. Maybe they are preparing something and waiting for the right time to launch it. Right now it is clear that a great app is now a part of Facebook Inc.
Also Facebook advertising plans may take time but sooner or later the recent acquisition will be used to reap more profits. Until then, all the users can enjoy the messaging service without any ads and just pay the annual subscription fees, which is 99 cents.
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