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Facebook Mega Acquisition Of WhatsApp For $19 Billion Was Brilliant!

Posted by: on Apr 8, 2015 | No Comments

On February 19, 2014 the top social network  Facebook acquired instant message app for smartphones WhatsApp for a mind-blowing $19 billion. The acquisition of WhatsApp was a brilliant move by Facebook. WhatsApp has over 700 million active users and generating health annual revenue yields for Facebook. Today we take a look inside why Facebook quickly moved to to acquire WhatsApp.  All of us are well aware of the fact that Facebook was created by young college kids with no vision of market capitalization or long term sustainability. But with the passage of time, it came under critical consideration that the immunity of any company’s adjustability to market matters a lot while indulging in the strong market competition. Dynamic and every time changing market trends sufficiently altered people’s preferences in various manners. Recently, the management of Facebook developed several competitive alternatives for strategic planning. The outcomes were significantly socking while interpreting the future outlook.

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It was revealed that, regardless of the current market place of social media leader and trend setter, the position will be declined in the coming time period. The reason behind this market shift was specified as the turning preferences of users from desktop and laptops to mobile phone connections. After that face book made it easy to reach people to face book mobile. But the scary phenomenon persisted in terms of other social media services completely based upon mobile. Venture of Facebook with Skype was a milestone in achieving market segments. Yet the desired outcomes were not achieved. In the meantime, a surprising news was found striking all around.

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After some time, the CEO of Facebook endorsed the news that Facebook is going to acquire WhatsApp. It is remarkable to be notified that Whatsapp is a great yielding company with annual revenues of $300 million. It is highly popular among people of every age since it is the age of wireless internet and instant availability of 3G and 4G internet has provided more convenience.  The main reason of acquiring WhatsApp was to generate immunity to market turnarounds. In other words, it was a sound ground that caused them to keep their place secure. In the beginning the gossips of yielding more money through ads in Whatsapp was surrounding all around. But later it was decided and made public WhatsApp will initially act like it has been doing so far. Mark Zuckerberg further explained that WhatsApp will not be bombarded with bundles of ads. It will remain the fastest mode of communication as it is. WhatsApp will not be managed by the current middle management of Facebook. Instead, it will keep running its operations as a separate cooperation with head quarter in California.

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The main focus of this acquisition will be strategic achievements of monetary and non monetary objectives and missions. It intends to offer the users with a tremendous blend of communication personally and socially. In response to a question about integration of both applications, the management revealed that they do not have such plan on priority right now. However, after maturation of this acquisition, the management will develop alternatives by checking its feasibility and viability. But the specialty which is ease of use and user friendliness will not be affected by any of the crucial decisions. It is a fact that people are more affectionate towards the conventional GUI of both applications, so this will be kept in view while making dynamic decisions. After the disappearing mobile app startup Snapchat turned down a reported $3 billion offer from Facebook in 2013 it was only logically for the number one social network to look else where to improve it’s standing on potential Facebook competitor by purchasing WhatsApp. Looking at the WhatsApp deal in 2015 I think it was a brilliant move by Facebook. Only time will tell if Facebook take another crack at acquiring Snapchat but for now the number one social network is king of the social mountain.

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